Republic Airways is considering acquiring Bombardier CSeries aircraft for Frontier Airlines’ fleet to replace A320 equipment (The Gazette, 10-Dec-2009). Several of Frontier's 51 A320s are subject to leases expiring between 2013 and 2017. A decision would be made in early 2010. [more – Perspective]
Republic Airways considering acquiring Bombardier CSeries aircraft for Frontier
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Frontier Airlines' on-time performance hiccups in summer 2016; IPO still in abeyance
Frontier Airlines began 2016 making meaningful strides in its on-time performance, besting its closest US ULCC rival Spirit Airlines. But its performance in the busy summer months of Jun-2016 and Jul-2016 slipped, due largely to challenges in ground handling. Now Frontier faces the task of restoring its OTP to consistently higher levels.
Frontier’s network composition is slightly different from those of the two other US ULCCs, Allegiant and Spirit. Its average weekly frequencies fall between those offered by its ULCC counterparts and, in some ways, Frontier’s network changes seem more rapid than those of other ultra-low cost airlines as it works to tailor the ULCC model to its specific strategy.
As a privately held company, Frontier does not discuss its growth prospects as freely as Allegiant and Spirit. But the airline has an ample pipeline of Airbus deliveries that will drive its growth over the medium to long term. During the past year the prospect of an IPO to fund Frontier’s growth has surfaced and quietened down; but at some point in the not-too-distant future the company’s investors will seek rewards for their endeavours.
Amadeus and Navitaire: a dual brand strategy allowing greater airline hybridisation
As airlines have embraced dual brand strategies to reach full service and low cost growth aviation IT has responded, as seen with Amadeus' acquisition of Navitaire, which mostly but not exclusively powered the passenger service systems (PSS) of LCCs. In the first six months since the deal closed Navitaire has added 230m passengers boarded, to Amadeus Altea's 393m. Navitaire passengers account for 37% of Amadeus' total.
Having significantly grown its market share, and with past LCC product forays not having worked out, Amadeus receives a new business stream. Some Navitaire customers (Ryanair, AirAsia, IndiGo) are larger than Altea customers and have high growth ahead of them. A second benefit is the Navitaire acquisition supporting Altea customers. By owning both products Amadeus can improve connectivity between Altea and Navitaire airlines. Most of Altea's large customers – Lufthansa, IAG, AF-KLM, Qantas and JAL – have an LCC operating Navitaire software. Of Navitaire's passengers – 35% are on airlines that are LCC units of full service airlines. Other airlines may be holding out on pursuing partnerships and connectivity until there is a cheaper, simpler and streamlined way.
It may seem that the Amadeus-Navitaire marriage is about full service and low cost segments, but its greatest strength is the role it will have in the hybrid segment. Hybridity is growing, and Amadeus-Navitaire could galvanise further expansion.