Frontier Airlines: Flying The American Way

Frontier Airlines has quite a history about its formation. There was an airlines by the same name formed in 1950 which operated for more than 3 decades. Subsequently, after its closure, some executives came together and incorporated the new Frontier Airlines in 1994. Initially it utilized Boeing jetliners but subsequently towards the end of the decade, it used the hiring as well as purchasing strategies to include Airbus jet aircraft in its expanding fleet. By mid 2005, all the existing Boeing aircraft were phased out to make it an all Airbus fleet enterprise.

Margins were always low and to maintain a sustainable level, Frontier Airlines organized and re-organized its structure and share holding pattern from time to time. However, with increasing pressure on margins the airline eventually declared itself bankrupt in 2008 as per Chapter 11 of existing United States laws to protect its assets. It was only towards the end of 2008 that it finally could come up with a statement of profit for its operations.

It was however always going to be a tough task to survive in the low cost airline segment. In the last quarter of 2009, Republic Airways Holdings acquired Frontier Airlines and its regional airline Lynx Aviation. Thus ended the dangers of bankruptcy that were looming large over Frontier Airlines. Although the operational staff members of the airline are now operating from Indianapolis, there is still a local headquarters maintained by the airline for other personnel from back end operations.

Although over the past few years, it has undergone mergers and acquisitions with other airlines operating in the same low cost airlines segment, the name Frontier Airlines has been retained along with its other identifiable features. Slowdown in the U.S economy has meant less business and even lesser revenue on certain routes. This has led to the management deciding to shut down non-profitable routes leading to downsizing. The extended slowdown has seen quite a number of businesses as well as major banks shut down but the airline still has not thrown in the towel yet.

The management is still in the process of restructuring the organization according to the changing economic scenario and subsequent needs of the customer. It remains to be seen what new strategies will be introduced by the management in order to survive in the budget airline segment and also how it can increase its operational capacity along revenue earning routes. If these things work out then Frontier Airlines will certainly have a greater chance to turn towards profitability once again in these tough times. The airline's employees have the necessary work experience and have put in the hard work, and these factors should ultimately result in the successful survival of the airline.