Originally Posted by
CMK10
It's certainly nice for us in RDU. Frontier is now flying to a number of cities nonstop that no one else is (PWM, MDT, SYR, BUF, MKE, PBI etc.) and they're driving prices down on other segments. I just wish they hadn't dropped RDU-PHL as now one way prices on that route are high again.
I think it's really hard for Frontier to compete against a legacy carrier flying from their hub -- at least in most markets. There are just so many advantages of operating from your hub. So logic suggest that non-hub flying would be more profitable for them. But the problem is that the hub cities are where the people are. Frontier crams a lot of people onto their planes, so they need big markets to operate in. How many non-hub city pairs can fill up a Frontier flight? I don't think there are an unlimited number of such markets. And in non-hub pairs, Frontier may stll have to compete against Southwest -- and Spirit. But very low costs certainly help. The key is obviously for them to stimulate demand at fare levels that are still profitable. Since we don't know that much about their finances, we don't really know how successful they are at this. They do seem to be more profitable than one would initially think, given their odd route and scheduling practices.