Frontier Airlines chief executive Jeff Potter has high hopes for growing his airline this year, while rallying employees to rise above competitors, including Denver newcomer Southwest Airlines.
Southwest’s aggressive approach to entering a new market and its financial strength may be a potential challenge to Denver-based Frontier. Some consider the turbulent airline industry to be ripe for consolidation. But at the very least, Potter has no fear that Frontier will be an acquisition target of Southwest.
Southwest Airlines is the largest carrier in the United States measured by domestic operations and has a market capitalization of nearly $13.5 billion. Frontier is a much smaller carrier with a market cap of nearly $325 million and a narrower focus, primarily on Denver, where Southwest says it wants to expand.
But barriers to a merger exist: Southwest operates a fleet of only Boeing 737s while Frontier operates all Airbus planes – two different sets of assets and operations.
And, though Southwest Airlines and Frontier Airlines both say they have family-oriented cultures and great employees, “two good cultures don’t make a good culture,” Potter said.
“I’d be hard pressed to find a successful merger in this industry,” Potter said. “The point is, how do you overcome the culture issue?”
United chief executive Glenn Tilton has expressed interest in airline industry consolidation after United emerges from bankruptcy. But for now, said United spokesman Jeff Green, “United’s focus is on completing our reorganization and exiting bankruptcy.”
Meanwhile, today, Frontier applied for government authority to fly to Canada starting around May 24. The carrier now flies only domestically and to Mexico. It may fly to Canada with its own aircraft or under its code-share agreement with Horizon Air.
Further, Frontier plans to expand to at least three new cities this year and will add more than 20 flights on existing routes.
Along with its growth plans, Frontier is looking for more gates at Denver International Airport. Frontier spokesman Joe Hodas said the company will be talking to airport officials about how to secure room to grow at DIA, including asking if other carriers can move from the A concourse.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or at kyamanouchi@denverpost.com.
