Loading

Speculation over sale of Frontier Airlines triggers questions over the ULCC evolution in the US

Analysis

The timing of Frontier Airlines' parent Republic Airways Holdings disclosing that it had reached a non-binding deal in its long-awaited sale of Frontier followed by an announcement by Spirit Airlines that Indigo Partners was divesting its stake in the carrier, fuelled intense speculation that Indigo's head Bill Franke was circling around Frontier. Mr Franke also resigned as chairman of Spirit's board of directors.

It would seem logical for Mr Franke to make a move to purchase Frontier given Indigo's ties to low-cost carriers Volaris, Wizz Air, Avianova and Tiger Airways. But the unfolding events pose an interesting question as to whether the mature US market really needs another ultra low-cost carrier (ULCC), and if Frontier can successfully transform itself into a true no-frills carrier based in Denver. Mr Franke, a shrewd operator, may think so.

Read More

This CAPA Analysis Report is 1,554 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More