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Frontier Airlines will offer a more refined ultra low-cost (ULCC) product offering than rival Spirit

Analysis

Since closing its acquisition of Frontier Airlines in late 2013 investment group Indigo Partners have been busy with polishing off the airline's transition to an ultra low-cost carrier (ULCC), including the recruitment of new executives with experience at Spirit, Ryanair and Allegiant Air.

After Indigo Partners relinquished their stake in Spirit during 2013 in order to pursue Frontier, speculation grew over the competitive threat Frontier would create for Spirit. Now both carriers are making assurances that they will essentially co-exist, and emphasising the differences in their respective approaches going forward.

Frontier is also forging ahead with network changes, including a robust push from Washington Dulles airport beginning in Aug-2014 with the launch of 14 new routes from the airport. Additionally, the carrier is also harvesting opportunities created through US consolidation and building up service in Cleveland.

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