"Sioux Falls airport offers new incentive to Frontier"

Wednesday, March 28, 2007

Airport offers new incentive to Frontier
$250K in revenue would be guaranteed
By Megan Myers
The Sioux Falls (SD) Argus Leader


The Sioux Falls Airport Authority on Tuesday added another goody to its bag
of incentives for Frontier Airlines.

The airport voted unanimously to offer a $250,000 revenue guarantee for 12
months to the Denver-based lower-cost carrier in exchange for starting
service here.

The airport and Sioux Falls Area Chamber of Commerce are calling on the
local business community for support, both financially and by pledging to
use the service.

"It's a good-faith effort to show the support of the community for
Frontier," said Mike Marnach, the airport's executive director.

Airport officials want Frontier - which serves destinations in 29 U.S.
states and Mexico from its Denver hub - because the lower-priced airline
could increase competition and lower fares for Sioux Falls travelers.

Frontier also is eligible for free landing and rent fees, $50,000 in
marketing and promotional money from the authority and another $35,000 from
Forward Sioux Falls to help with start-up costs. Those deals are available
to any airline that agrees to come to Sioux Falls in 2007, but they were
created with Frontier in mind.

Sioux Falls is one of 64 communities in the region gunning for the service,
and Frontier is expected to choose a handful of destinations later this
spring.

Frontier is looking to communities such as Sioux Falls for growth as it
battles competition from low-priced carrier Southwest in Denver.

Revenue guarantees aren't uncommon offerings for airports to airlines. The
airport offered a $350,000 guarantee - paid for by a federal grant - to
America West in 2004 to start service to Phoenix. The airline - now US
Airways - later pulled out of Sioux Falls.

Frontier spokesman Joe Hodas said earlier this month that incentives such as
reduced landing fees weren't make-or-break in the decision.

"There's not necessarily one ideal fit," Hodas said.

The airport and chamber next week will offer a luncheon where people can
sign up for Frontier's frequent flyer program. Businesses also can pledge to
fly Frontier from Sioux Falls and to help pay for advertising for the
flights.

Mark Sixel, the consultant who contracts with the airport to help bring in
new airlines, will speak.

The free event is noon April 5 at Holiday Inn City Centre. Those who wish to
attend are asked to RSVP to Sara Weber at 373-2006 or at
sweber@xxxxxxxxxxxxxxx

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