Frontier Airlines has lost $90 million in the first half of 2011 and parent company Republic Airways has announced plans to try to staunch the losses with layoffs and reconfiguring aircraft.

The losses are attributed to high fuel costs but I have to call nonsense on that.  Every airline has experienced high fuel costs and many have higher labor costs than Frontier.   I think the problem is an unfocused strategy that has involved competing in Denver on price alone and using any aircraft Republic Airways doesn’t have a use for with another airline.

Frontier has potential and real value but only to people who know how to run such an airline.  Frankly, I think that one of the best things that could happen is Republic selling the business to someone else.  JetBlue would be an excellent fit and, frankly, I don’t think you could even get Southwest glance in its direction now. 

But that window is *barely* open right now and it closes if Frontier loses anymore ground in its fight.

Filed under: Airline News by ajax
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