Originally Posted by
knope2001
If the plan includes more changes in the Frontier network – which it well could – Milwaukee of course comes to mind. It’s a fairly obvious thought since Milwaukee has clearly lost a lot of money for Republic. Rather than a flippant “Milwaukee” on the list of what to cut, I think it’s worth looking at exactly what there is to cut.
In his letter, Bedford mentioned that the elimination of the FL* SkyWest flying is a positive development but likely would do little to address the "situation" Frontier faces in Milwaukee.
Given that Bedford has publicly stated Milwaukee has lost a significant amount of money, I don't think it is "flippant" to suggest more aggressive action is needed there to right the ship.
The real question the Board has to be asking is can a hub operation in Milwaukee work in a high fuel price environment where over 60% of flights are operated by high CASM regional jets. What specifically needs to be done to make Milwaukee at least marginally profitable?
This is the third major schedule change Frontier has undertaken to address the lack of profitability in Milwaukee. Last winter, they reduced capacity significantly in many markets vs. 2009, operated some routes less than daily, used larger aircraft with lower CASM, etc. all in an effort to stop the bleeding. It didn't work.
Obviously the environment in Milwaukee is much more complex and there are likely long-term strategic issues at play here as well. However, time is running out. Frontier can't keep throwing good money after bad in Milwaukee. If Southwest doesn't start making some changes (both from a scheduling and yield standpoint) Frontier will have to start making some very difficult decisions in the near term.