Fans of Frontier Airlines — and low airfares — received a nice gift last week when Republic Airways Holdings won a bidding war for the Denver-based airline over rival Southwest.
Southwest, also a low-fare carrier, would have gobbled up Frontier and sold off its planes. But Republic plans to operate Frontier as a wholly owned subsidiary, which means it will retain its name and the signature planes — with their “spokesanimals” tails and TV screens in the seatbacks — will continue to fly.
And Coloradans will continue to have the choice of two quality low-fare airlines in Southwest and Frontier.
The Republic deal also allows Frontier’s subsidiary, Lynx Aviation, to continue operation as its own entity.
Yes, the deal means we no longer get to claim the airline as “Denver-owned,” but Frontier needed the cash infusion.
We’ve known since last April, when the company filed for bankruptcy protection, that the airline faced tough times.
As loyal customer Ginger Polley put it, “I’m relieved, because it gives me hope that they will keep the name, branding and animals. Something about those animals is just warm and fuzzy.”
A Southwest-Frontier marriage would have meant combining the No. 2 and No. 3 airlines at Denver International Airport, and we fear that may have led to higher fares for passengers.
It could be argued that a stronger Southwest could have forced DIA’s main carrier, United Airlines, to bring down prices. But we think more competitors are better than fewer, and expect that Republic- owned Frontier and Southwest will continue frequent sales and perks that lower costs for customers.
The Republic deal also could help the many Colorado-based Frontier employees. Southwest wanted to add Frontier’s pilots to the bottom of the seniority list, while Republic’s pilots union is willing to dovetail the new employees into the pecking order.
“I’ve always believed the Republic bid was the most interesting in terms of formation of tomorrow’s domestic airline industry,” said William Swelbar, an industry expert. “Southwest may be in a dominant position today, but it will be challenged tomorrow.”
Southwest has been a powerful innovator in the airline industry and its success has led to lower fares and stronger competition. The airline has been a positive addition to DIA.
Still, we’re pleased to have Grizwald the Bear, Larry the Lynx and Flip the Dolphin still flying the skies.
