Frontier Airlines EarlyReturns - The new COO - CEO

The news is out. The COO - and eventually independent CEO - is David Siegel.

All I can say is - wow! He is one very smart cookie. I have no doubt there will be nay-sayers because of what happened at US Airways. he was shafted with the wrong end of the pineapple, basically because he didn't tell the staff what they wanted to hear - he told them the truth.

He was CEO at US when Southwest announced PHL, and Mr. Siegel is famous for saying "they're coming to kill us" - which was too close to home for many.

This throws a cat among the pigeons. :-)

davy

Article form Denver Business Journal outlines the move.

“Siegel’s appointment is another step towards the goal of making Frontier Airlines a viable, strong and independent business,” Republic said in a statement.

Rjet also announced other new appointments, including:

Robert Ashcroft- Senior Vice President, Finance
Daniel Shurz - Senior Vice President, Commercial
Greg Aretakis - Vice President of Network and Revenue Management
Dan Krause - Vice President of Marketing and Customer Experience

http://www.bizjournals.com/denver/news/2012/01/26/frontier-airlines-gets-new-ceo-as-it.html?ana=yfcpc

There will be lots of topics for discussion at the Raymond James Global Airlines Conference.

Frontier press release:

http://phx.corporate-ir.net/phoenix.zhtml?c=131107&p=irol-newsArticle&ID=1653296&highlight=

Robert Ashcroft- Senior Vice President, Finance

Wow...another blast from the past. I conversed on and off with RNA back in the early 90's starting in the old Usenet days...that's horse-and-buggy internet for those of you under the age of 40. (Anybody else remember rec-travel-air??) Then he and I were in the the same online airline group that Daniel Shurz and I both participated in for many years in the 90's and 00's.

Robert is whip-smart and brings a lot to the table. A good development!

SEC filing dated 01/27/2012 New Frontier Management FAQ addresses many issues and provides for an interesting read.

After the split from Republic, will Frontier once again do business the way it did in the past?

No. We must recognize that pursuing the old business model ended with the bankruptcy and sale of our company – an indication that the old business model was fundamentally flawed, however pleasant our memories may be of that era. Further, as the table below shows, the competitive and economic environment has only gotten tougher since bankruptcy, particularly with the growth of Southwest in Denver and in the rising price of fuel. Lastly, the airline industry has evolved substantially, for instance with the recent rising prominence and profitable growth of ultra low cost carriers in the US such as Allegiant and Spirit. Returning to what we once were is not an option.

Jobs in MKE:

Commercial functions currently in Milwaukee (such as loyalty, e-commerce and some other marketing functions) will be consolidated with the larger commercial group that is already in Denver, and affected Milwaukee employees have already received transition plans as part of this announcement. Milwaukee reservations and customer relations team-members are unaffected.

As far as breaking off F9 from Republic:

We currently expect this to be a six-to-twelve month process, but we must all recognize that this is not under our control. In part the timing depends on how interested investors are in Frontier and how fast they react, and in part the timing depends on what Republic chooses to do in response to investor interest. Republic owns Frontier, not the other way around, so they will have the final say.

http://phx.corporate-ir.net/phoenix.zhtml?c=131107&p=IROL-secToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2 RvY3VtZW50L3YxLzAwMDExNTkxNTQtMTItMDAwMDA2L3RvYy9w YWdl&ListAll=1

The faster BB sells or spins F9 the better....

Plans of new management include stronger DEN presence, per the Denver Business Journal.

http://www.bizjournals.com/denver/news/2012/01/26/new-frontier-airlines-chief-sets.html

Sell.Sell.Sell.

Plans of new management include stronger DEN presence, per the Denver Business Journal.


He wants to move maintenance jobs back to DEN. MKE can start waving goodbye to that operation.

He wants to move maintenance jobs back to DEN. MKE can start waving goodbye to that operation.

And RAH waiving goodbye to Frontier

He wants to move maintenance jobs back to DEN. MKE can start waving goodbye to that operation.

The writing was on the wall last year.

http://www.flyertalk.com/forum/17083124-post23.html

The writing was on the wall last year.


The call center should be next.

The call center should be next.

Hopefully not. Perhaps the MKE call center location at the airport is a good deal for F9. Plus, unlike maintenance, the call center doesn't necessarily have to be located at the biggest hub...it can be anywhere.

In fact, the argument could be made that, if there is a big snowstorm in DEN, it might be easier to get additional call center staff to MKE than to DEN.

Hopefully not. Perhaps the MKE call center location at the airport is a good deal for F9. Plus, unlike maintenance, the call center doesn't necessarily have to be located at the biggest hub...it can be anywhere.



+1

The relocation and build-out of the call center at the former hangar space at MKE could not have been a minor expense.

I truly hope that the call center remains at MKE. The CSRs there have always provided excellent service, going back to YX (though I wonder how many YX employees remain).

+1

The relocation and build-out of the call center at the former hangar space at MKE could not have been a minor expense.

I truly hope that the call center remains at MKE. The CSRs there have always provided excellent service, going back to YX (though I wonder how many YX employees remain).This one's simple: If entry-level labor costs are lower in MKE than in DEN, the call center will stay.

From the Denver Business Journal:

Frontier Airlines is poised to bring 500 to 1,000 jobs to Denver — if it can win an incentive package close to the $16.9 million package that Denver and Colorado offered the DIA-hubbed airline to maintain and increase jobs in the city in late 2009.
Airline officials are negotiating with the City and County of Denver, and the State of Colorado, to reduce or eliminate four taxes that affect Frontier and other airlines.
Frontier rejected the late-2009 package and accepted one worth roughly $27 million from the City of Milwaukee and State of Wisconsin

Maybe not just the maintenance jobs, but call center, as well.

What about the fact that the hangar in MKE is owned by RAH/YX? That was cited as a major factor in moving maintenance from the leased from UA space in DEN. And, since many of the existing DEN employees did not take a transfer, weren't they able to lower costs by moving as well? Why go back to leased space? Airbii can still be flown DEN-MKE for scheduled work even if MKE is eliminated/reduced as a hub. Or is the grabbing of the incentives from the city every few years overriding everything else?

What about the fact that the hangar in MKE is owned by RAH/YX? That was cited as a major factor in moving maintenance from the leased from UA space in DEN. And, since many of the existing DEN employees did not take a transfer, weren't they able to lower costs by moving as well? Why go back to leased space?

This article from Nov 2009 is interesting to read in retrospect.

http://www.statebillnews.com/2009/11/frontiers-maintenance-jobs-flying-out-of-denver/

A Bedford comment in the article, regarding the job expansion at MKE:

“Our expansion in Milwaukee sends an important message to our current and future frequent fliers and to the local and state communities about our dedication to remain Milwaukee’s hometown airline.”

Another interesting article from 2009:

http://www.denverpost.com/business/ci_13476334

Notable Bedford quote in this article:

While the maintenance facility issue simmers, Frontier's headquarters will remain in Denver "as long at Sean (Menke) is running the show."

So much has occurred in the interim!

What about the fact that the hangar in MKE is owned by RAH/YX? That was cited as a major factor in moving maintenance from the leased from UA space in DEN. And, since many of the existing DEN employees did not take a transfer, weren't they able to lower costs by moving as well? Why go back to leased space? Airbii can still be flown DEN-MKE for scheduled work even if MKE is eliminated/reduced as a hub. Or is the grabbing of the incentives from the city every few years overriding everything else?

The problem with the Continental Denver hangar that Frontier used is it wasn't designed for Airbus A320 series planes - it was designed for Continental's 737's. So going forward, if Frontier were to take over sole possession of the hangar, it would need some investments made.

The lack of commonality with Frontier's fleet and that of the CO hangar was also a big reason F9 originally made plans for an 8-bay line maintenance hangar at DIA, which was shelved during the Chapter 11 filing.

He wants to move maintenance jobs back to DEN. MKE can start waving goodbye to that operation.

The call center should be next.

From The Denver Post:

http://www.denverpost.com/business/ci_20553794/frontier-airlines-wants-tax-incentives-bring-jobs-colorado?source=rss

Farewell to great MKE employees, some very long-term. The CSRs at MKE have always done a terrific job in representing their company!

Crew base to Chicago:

http://www.denverpost.com/business/ci_20544638?source=pop

Farewell to great MKE employees, some very long-term. The CSRs at MKE have always done a terrific job in representing their company!


Bedford made a lot of promises. What is MKE left with? Buddy the Badger.

From @flyfrontier:


The man with the plan, our SVP-Commercial @wandererurban will be guest tweeting & taking your aviation Qs on 7/26 at 12 MT! #FlyFrontierChat

Despite Twitter's rough morning we are back up and running. Start getting those #FlyFrontierChat questions ready.

Starts at 12 PM MT...now!