Despite new fees, Frontier fares can run hundreds of dollars below prices of rivals

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Frontier flight making landing approach. Todd Miller photo

 

Todd Miller photo Frontier
Todd Miller photo Frontier

Frontier Airlines launched service between New Castle Airport (Wilmington Philadelphia ILG) to Atlanta and Detroit last week.

The airline will offer one flight on Tuesdays, Thursdays and Sundays to the cities. The service was launched as Frontier offered what it called an ala carte fare structure that charges for carry on luggage and assigned seats.

At the same time, the airline cut fares by 12 percent and offered a Discount Den club with lower fees on luggage from Wilmington/Philadelphia to Detroit. That cut fares to as low as $84 round trip. However, carry on luggage charges could add $50 to that fare.

Fares were higher and seats were fewer to Atlanta in mid May, However, fares ranged from about $130 round trip minus luggage charges.

The pricing policy had been expected since Frontier was bought by Indigo Partners, an investment firm that was instrumental in the development of Spirit Airlines, a low-fare carrier with a similar pricing structure. It has since sold its stake in Spirit. Frontier has been operating with lower profit margins than Spirit. The fees are expected to boost the bottom line, although the carrier claims that even with the fees, fares will be lower than those of competitors. Frontier posted $72 million in operating income in 2014, compared to $118 million at Spirit, according to federal figures.

Frontier officials stated they will work to provide a higher level of customer service. Spirit continues to rank low in that area. Even with the luggage charge, the tariff is far lower than the $400-plus nonstop fares from Philadelphia to Detroit or Atlanta on comparable days in the middle of May. The low fares on Frontier continue into June.

Frontier also offers a Classic Plus Fare for about $200 round trip to Detroit and $230 to Atlanta that is fully refundable and allows one checked bag a free beverage and added leg room.

For now, luggage charges are also offset by parking that is now free. A fee is expected to be added at some point.

Frontier now serves seven cities nonstop from the Wilmington/Philadelphia airport: Atlanta; Chicago-Midway; Denver; Detroit; Fort Myers; Orlando; and Tampa. “We are excited to now offer seven destinations from convenient Wilmington-New Castle Airport,” David Siegel, Frontier’s CEO stated in a release. “Customers will love our friendly service, low fares and consumer choices when they fly with Frontier.”

“Expanded air travel options through Frontier are a win for travelers and the airline,” stated Delaware Gov. Jack Markell. “We encourage Delawareans and nearby travelers to take advantage of the added routes offered by Frontier. It will simplify their travel plans and allow Frontier to strengthen its presence in the First State.”

“Wilmington-Philadelphia Airport and Frontier Airlines are fast becoming the best overall value for budget savvy passengers seeking alternatives for travel to and from the Delaware Valley,” said Stephen Williams, Airports Director for the Delaware River and Bay Authority.  “With the addition of Atlanta and Detroit to the flight schedule, Frontier continues to offer even more options for our customers.  We want to be the consumers’ choice for low fares, free parking, big planes, great destinations, and a hassle-free, convenient airport experience.”

Delaware and Trenton are part of a strategy by Frontier to use small airports with low operating costs to offer flights from the Delaware Valley. Trenton now offers service to 17 cities. Delaware officials would like to see the same pace of growth at New Castle.

Federal figures showed  that passenger traffic in the first six months of service from Wilmington totaled nearly 55,000 on about 350 flights, with 8,700 passengers during a wintry January 2014. Eighty-seven percent of seats were occupied in 2013, compared to 92 percent in January of this year.

2 COMMENTS

  1. Just wish that Frontier were better organized so that I could make a reservation on a flight in October. They do come across as having made any long term commitment to this market.

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