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Frontier must trim costs to stay in business: Bedford

15-Jun-2011 1:20 PM

Republic Airways CEO Bryan Bedford subsidiary Frontier Airlines must find cost savings of USD120 million if it is to stay viable (The Denver Post, 14-Jun-2011). He advised Frontier staff that these savings must come from employees and vendors. USD25 million-USD30 million of the USD120 million already has been trimmed through fleet and network changes, Mr Bedford said. A further USD25 million is related to labour costs. "The remaining improvements will result from work we're doing with several key stakeholders," Mr Bedford wrote to staff, such as aircraft lessors, distribution partners, maintenance suppliers, and sales and ticket distribution groups.