Tuesday, July 10, 2007

Frontier Airlines Announces Service to Three Initial “Q400” Markets

DENVER (July 3, 2007) – Frontier Airlines (NASDAQ: FRNT) today announced it will offer low-fares and non-stop service between its Denver International Airport (DEN) hub and three new cities which will be served by its new fleet of 74-seat Bombardier Q400 aircraft, operated by Frontier Airlines Holdings Inc. subsidiary, Lynx Aviation. Beginning this fall, Frontier will seek to make Denver the travel gateway to 60 destinations in the United States, Central America and Canada for the following communities:

• Wichita Mid-Continent Airport (ICT), Wichita, Kansas: Service to begin on Oct. 1, 2007
• Rapid City Regional Airport (RAP), Rapid City, South Dakota: Service to begin on Oct. 5, 2007
• Sioux Gateway Airport (SUX), Sioux City, Iowa: Service to begin on Oct. 5, 2007

“This is a historic day for us as today’s announcement has been in the works since we first laid out our plans for the development of Lynx Aviation and ordered the first 10 Bombardier Q400 aircraft almost a year ago,” said Frontier President and CEO Jeff Potter. “When the idea of sending out a request for proposal (RFP) to communities looking for low fare service was first floated, I will admit that I was skeptical. That skepticism faded as we began to get these compelling, heartfelt proposals from communities around the country, telling us how much they needed Frontier and what our low-fare, high-quality service would mean to them.  In the end, we sent out 65 proposals and heard back from 62 communities most of whom eloquently demonstrated they wanted Frontier--and we’re grateful for their support. 

“However, we had to narrow down this great list of opportunities to what will ultimately be about nine new cities that we will serve with the Q400 by December 2007.  The first of those new markets--Wichita, Rapid City and Sioux City--are dynamic communities that are clearly underserved for low fare service and the citizens of those cities absolutely deserve the high-quality product that Frontier can offer.  They are ready for the economic growth that can be generated by a low-fare hub in Denver offering them non-stop service to Denver and one-stop service to 60 destinations throughout the United States, Canada and Central America.  We look forward to returning the favor of their support beginning in October, and we are eager to become true partners to those communities.”

“Frontier’s growth has previously been fueled by mainline aircraft and the addition of key mainline markets,” said John Happ, Frontier Senior Vice President of Marketing and Planning.  “Today’s new markets, as well as the additional Q400 cities we will announce in the near future, represent a critical step in our diversification plan.  These high-yield, smaller density markets can leverage the strengths of our Denver hub by taking advantage of not only the non-stop Denver service but also the tremendous connecting opportunities our hub can offer.  We are confident that Wichita, Rapid City and Sioux City represent only the beginning of the opportunities afforded by the expansion of our regional service, which will play a primary role in Frontier’s growth for the next several years.”

The Bombardier Q400
The Q400 is an extraordinary modern turboprop that is ideal for flying into smaller markets allowing Frontier to bring its industry-leading customer service to underserved markets unreachable with its mainline and regional jet fleet.  In the range that Frontier will be flying the Q400, it offers a 30 percent reduction in fuel-burn with no loss in speed compared to similarly sized jets, making it one of the most fuel-efficient and environmentally friendly aircraft in the skies today.  The low fuel burn, combined with jet speeds offers Frontier exceptional economics while providing its passengers with the comfort and quality of service that they expect from Frontier.

Unlike turbo-prop aircraft of the past, the Q400 features a revolutionary Noise and Vibration Suppression (NVS) system, which makes this aircraft the quietest, most vibration-free turboprop in the sky. The NVS system attacks noise at its source-airframe vibration caused by pressure pulses from the propeller blades beating against the fuselage. During flight, concealed microphones measure noise levels and propeller vibration and send this information to an onboard computer. This computer continually analyzes the information before sending it to devices called Active Tuned Vibration Absorbers (ATVAs), which are mounted on the fuselage frames.  The absorbers produce counter vibrations that all but cancel out the original vibrations. The result is a sharp reduction in both cabin vibration and noise, and a remarkable increase in passenger comfort.

Lynx Aviation Update

Lynx Aviation, a subsidiary of Frontier Airlines Holdings, Inc., is the sole owner and operator of the fleet of 10 Q400 aircraft that will serve Frontier’s new markets.  Lynx has already received conditional Department of Transportation (DOT) approvals necessary to begin service with the Q400 in September and is currently in the process of securing the appropriate Federal Aviation Administration (FAA) approval.  Final DOT approval will be granted once the FAA approval has been secured.  The airline expects all ten Q400 aircraft to be delivered by December 2007 and, along with Frontier Airlines, expects to make several more new market announcements in the coming months. 

Fares and Schedules

Following are the Wichita, Sioux City and Rapid City flight schedules:

Denver-Wichita (service begins October 1, 2007)
Flight Number Departs Arrives Frequency
3252 10:44a.m. 1:11 p.m. Daily
3254 3:40 p.m. 6:07 p.m. Daily
3256 7:55 p.m. 10:22 pm. Daily

Wichita-Denver (service begins October 1, 2007)
Flight Number Departs Arrives Frequency
3251 7:05 a.m. 7:39 a.m. Daily
3255 1:41 p.m. 2:15 p.m. Daily
3257 6:37 p.m. 7:10 p.m. Daily

Denver-Sioux City (service begins October 5, 2007)
Flight Number Departs Arrives Frequency
3486 10:35 a.m. 1:07 p.m. Daily
3488 8:30 p.m. 11:02 p.m. Daily

Sioux City-Denver (service begins October 5, 2007)
Flight Number Departs Arrives Frequency
3485 6:55 a.m. 7:33 a.m. Daily
3487 1:37 p.m. 2:15 p.m. Daily

Denver-Rapid City (service begins October 5, 2007)
Flight Number Departs Arrives Frequency
3392 8:20 a.m. 9:30 a.m. Daily
3396 9:40 p.m. 10:50 p.m. Daily

Rapid City-Denver (service begins October 5, 2007)
Flight Number Departs Arrives Frequency
3391 6:20 a.m. 7:35 a.m. Daily
3393 10:00 a.m. 11:15 a.m. Daily

All times given in local arrival or departure city times.

The airline also provided introductory fares for flights to and from Denver to Wichita, from $109, Sioux City from $84, and Rapid City from $99 for off-peak travel (Tuesday, Wednesday and Saturday)* . All sale fares are one-way, with round-trip purchase required and must be purchased by 9:59 p.m. MDT, Aug. 15, 2007. To make a reservation, customers can visit Frontier’s Web site at http://www.FrontierAirlines.com, contact Frontier Airlines at 1-800-4321-FLY, or consult their professional travel agent.

To celebrate the new service, members of Frontier Airlines’ frequent flyer program, EarlyReturns, will receive double bonus miles for travel to and from Wichita between Oct. 1, 2007 and Dec. 1, 2007, as well as to and from Rapid City and Sioux City between Oct. 5, 2007 and Dec. 5, 2007.  To enroll in the program, customers can visit Frontier’s Web site at http://www.FrontierAirlines.com, pick up an EarlyReturns enrollment form at any Frontier airport counter, or call Frontier’s EarlyReturns Service Center toll-free hotline at 866-26-EARLY or Frontier’s reservations at 800-4321-FLY.
*Fares shown are each way, but 21-day advance roundtrip purchase is required for off-peak travel Tuesday, Wednesday and Saturday. Fares slightly higher other days of the week. Tickets must be booked by 9:59 p.m. MDT 8/15/07 or within 24 hours, whichever comes first for travel thru 3/5/08. Blackout dates of 11/16-17, 20-21, and 24-26, 2007; 12/21-23, and 26-30, 2007; 1/1-2, 5-6, 18, and 21, 2008; 2/15, and 18, 2008 apply. Fares do not include passenger facility fees of up to $18 roundtrip, the September 11th Security Fee of up to $10 roundtrip or fees of $3.40 per segment. A segment is defined as one takeoff and one landing. Seats are limited and certain flights and/or days of travel may be unavailable at these prices, especially during busy travel periods. Tickets are nonrefundable and nontransferable, but may be reissued for a $100 change fee plus any applicable difference in fare. Previously purchased tickets may not be exchanged for these special fare tickets. Fares and schedules are subject to change without notice and other restrictions may apply. Service to/from Rapid City, Sioux City and Wichita, are provided by Frontier operated by Lynx Aviation.

About Frontier Airlines Holdings, Inc.

Frontier Airlines Holdings, Inc. is the parent company of Denver-based Frontier Airlines. Currently in its 13th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing approximately 5,000 aviation professionals. With 60 aircraft and one of the youngest Airbus fleet in North America, Frontier offers 24 channels of DIRECTV® service in every seatback along with 33 inches of legroom in an all coach configuration. In conjunction with its regional jet fleet, operated by Horizon and Republic Airlines, Frontier offers routes linking its Denver hub to 60 destinations including 49 U.S. cities in 30 states spanning the nation from coast to coast, seven cities in Mexico and two cities in Canada. In November 2006, Frontier and AirTran announced a first-of-its-kind integrated marketing partnership that offers travelers the ability to reach more than 80 destinations across four countries with low fares, aboard two of the youngest fleets in the industry. In December 2006, Frontier was designated “Best Low Cost Carrier” in the U.S. by the readers of Business Traveler magazine. Frontier’s maintenance department has received the Federal Aviation Administration (FAA) Diamond Award recognizing its advanced training standards for eight consecutive years, from 1999 to 2006. For more in-depth information on Frontier Airlines, please visit our Web site at http://www.FrontierAirlines.com.