Saturday, May 16, 2015

Frontier CEO Siegel resigns as business model transition continues

Frontier Airlines Airbus A318-111 (c/n 1939) N801FR "Grizwald" the Grizzly Bear taxies towards a Rwy 19R departure at John Wayne Orange County Airport (SNA/KSNA) on September 9, 2012.
(Photo by Michael Carter)

Frontier Airlines CEO David Siegel resigned this week, citing personal reasons.

Frontier announced that Siegel’s duties would be spilt by chairman Bill Franke, who will handle strategy and finance, and president Barry Biffle, who will oversee day-to-day operations. Siegel, a former US Airways CEO, was a holdover from Denver-based Frontier’s previous owner, Republic Airways Holdings.

Franke’s Indigo Group acquired Frontier in late 2013 and Siegel, who had been named Frontier CEO by Republic in January 2012, stayed on as Frontier switched to an “ultra-low cost carrier” business model at Franke’s direction.

During the transition to the new model, Frontier has struggled with on-time performance and, according to the US Department of Transportation, now has the highest passenger complaint rate among US airlines.

Following Siegel’s resignation, Biffle told The Denver Post that Frontier isn’t planning to change its strategy. “We believe we’ve got the costs on the right track [and] we believe we’ve got the network on the right track,” he said. “We’ve just got to finish the last part of our promise of ‘low fares done right,’ which is to run a reliable airline.”

(Aaron Karp- ATWOnline News)

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