"City officials pitch KCI as good spot for Frontier to expand"

Monday, September 1, 2003

City officials pitch KCI as good spot for Frontier to expand
By RANDOLPH HEASTER
The Kansas City (MO) Star


Kansas City aviation officials recently met with executives from Frontier
Airlines, trying to show the low-cost carrier the benefits of adding service
at Kansas City International Airport.

Kansas City aviation director Russ Widmar and marketing director Tom McKenna
met with Jeff Potter, Frontier's chief executive officer, and others Aug. 21
at Frontier's headquarters in Denver.

"We presented opportunities for them in Kansas City," McKenna said. "We
discussed the markets unserved by nonstop flights at KCI, specifically
markets where Frontier is currently operating."

McKenna said those cities included Fort Lauderdale, Fla.; Austin, Texas; New
Orleans; and Reno, Nev.

Widmar and McKenna met with Potter shortly after it was disclosed that
several cities with underutilized airports have contacted Frontier about
adding flights there. In Kansas City, City Manager Wayne Cauthen initiated
discussions with Frontier, using access he gained as a former employee in
the Denver mayor's office.

Frontier is a small carrier that has been growing in recent years and has
had trouble obtaining additional gates at Denver International Airport.
United Airlines, the dominant hub carrier in Denver, has resisted giving up
any of its gates to a low-cost competitor.

Airport officials from St. Louis and Pittsburgh also have met recently with
Frontier executives, said Joe Codas, an airline spokesman.

"Over the normal course of business, we meet with cities on a pretty regular
basis," he said. "We continue reviewing our options."

Hodas said Frontier also is continuing to talk to Denver airport officials
about adding space. Frontier is just exploring its alternatives at this time
and is not in a process to make an imminent decision, Hodas added.

McKenna said part of his and Widmar's presentation focused on showing how
total airport costs for airlines at KCI on a per-passenger basis are sharply
lower than those of St. Louis, Pittsburgh and Denver.

"We're saying to them that it's a low-cost airport, with brand new
facilities, and gates are available," he said.

Even so, one Denver-based aviation analyst said he doubts Frontier will
expand significantly outside Denver.

"The challenge in Kansas City is Southwest (Airlines) serving most of the
big markets out of there," said Mike Boyd, president of the Boyd Group, an
aviation consulting firm. "The cities where there aren't nonstop flights
aren't big enough to make enough of a difference for Frontier."

Boyd said Frontier's long-term expansion plans are conservative, making the
idea of a second hub in Kansas City, St. Louis or Pittsburgh remote.

Kansas City aviation officials hope Potter's familiarity with Kansas City as
a former chief executive of the now-defunct Vanguard Airlines might help
their cause. Another ex-Vanguard marketing executive at Frontier is Greg
Aretakis, who also met with Widmar and McKenna.

"I wouldn't bank on those connections making a difference," Boyd said.

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