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Frontier Airline - Assignment Example

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It was founded by Ray Wilson and five other associates, who comprised of Lew Dymond, Feldman Al, Glen Ryland, Bud Maytag, and Hal Parr…
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Frontier Airlines Brief History of the Frontier Airline Frontier Airline was initiated in 1950 as one of the low-cost airlines in the U.S with its headquarters located in Denver, Colorado. It was founded by Ray Wilson and five other associates, who comprised of Lew Dymond, Feldman Al, Glen Ryland, Bud Maytag, and Hal Parr. Essentially, the airline was operating smoothly in the first 30 years of service until the begin of 1980 when the then president Al Feldman moved jobs to become the Chief Executive Officer (CEO) of another airline known as Continental Airlines. As such, his position was taken up by Glen Ryland who would later begin to mismanage the airline to an extent of compelling employees to accept low wages and no benefits. Nevertheless, the Airline did not survive the continuous losses it incurred and finally shut towards the end of 1986, and was declared bankrupt (Frontier Airline Annual Report, 2013).
In 1994, the Airline was reborn under top management of Chief Executive Officer (CEO) David Siegel and President Barry Biffie. During its first attempt in the market, Frontier Airlines had 60 air planes of which 35 were Boeing 737-200 and the rest were Convair 580. Currently, the Airline operates a fleet of 18 Airbus A320s and 35 Airbus A319s. However, the Airline has a codeshare with Great Lakes Airline that have Embraer EMB -120 Brasilia and Beechcraft 1900 D. Apparently, its first encounter in the market was marked by an inception of 40 destinations that later grew to 69 destinations in two years and before it was shut down it had managed to attain about 170 destinations in the U.S and other parts of the world. After the rebirth, the Airlines has managed to capture over 75 destinations in the U.S., Costa Rica, Mexico, Jamaica and the Dominican Republic (Frontier Airline, 2014).
Consequently, Frontier Airlines currently enjoys a service of more than 3,900 professional in aviation who attend to more than 350 daily flights in the Airlines. However, the previous operation period has around 5,100 employees who were mandated to attend to both daily and occasional flights. Since its inception, Frontier Airlines has branded itself as a low cost airline. Nevertheless, early this year the C.E.O David Siegel came up with a strategy ‘ultra-low cost’ where their flight fares were stripped down to an average price of an economic ticket and as a marketing campaign that is meant to retrain the public on how the Airline intends to continuously operate especially after its rebirth. During the unveil, Siegel confirmed that customers were now able to enjoy an average of 12% for their general flight expenses (Frontier Airline, 2014).
It is for undoubted reasons that Frontier Airlines has witnessed an improvement its financial status as compared to the past. After the rebirth, it has been documented that it received over $29.8 million dollars in the third quarter of one year which covered up for the loss worth $1.5 million. This is according to an annual report although their financial performance has drastically increased in the last five years of its operations.
References:
Frontier Airline (2014) Retrieved from http://www.flyfrontier.com/who-we-are on 6th September, 2014
Frontier Airline Annual Report (2013). Retrieved from
www.annualreportowl.com/Frontier Airlines/2013/Annual Report/Download Read More
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