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REUTEMAN: Southwest takes aim at foundering Frontier Airlines

By Rob Reuteman, Rocky Mountain News (Contact)

Published June 26, 2008 at 10:10 p.m.

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Make no mistake about it: Southwest Airlines is doing its damnedest to put Frontier out of business.

Roughly 16 hours after bankrupt Frontier announced it was dropping flights between Denver and 22 cities, Southwest announced it was adding 20 daily departures from DIA.

Coincidence? That's what Southwest would have you believe.

"I understand the perception, and we certainly pay attention to the market and what's going on with our competitors there," Southwest spokesman Chris Mainz told our airline reporter Chris Walsh on Thursday. "But this was an announcement we had on the books for a while. Denver is a growth city for us right now, and we will try to continue to grow there when we can. "

The key phrase there is " . . . when we can," as in "when our competitor is flat on his back on the canvas and the ref is well into his 10-count."

I remember the Friday, April 12, when Frontier declared bankruptcy. It was the last week of the NBA regular season schedule and the Nuggets were fighting for the last playoff berth. It seemed that every single commercial break in every Nuggets game from that point on featured an ad that began, "Fly the fastest-growing airline in Denver - Southwest." It was brutal.

As Betsy Snyder, a Standard & Poor's analyst, told Bloomberg News Thursday, "They typically go into markets that other carriers are having difficulties in and expand their operations."

But hey, don't take my word for it, and don't take hers. I was riding light rail home on Wednesday, the day Frontier announced its cutbacks. I was reading The Wall Street Journal, really reading it as opposed to my usual early-morning skim job.

Page B-2: "In Hard Times, Some Firms 'Go for the Jugular.' " The examples: Hewlett-Packard, FedEx and Southwest. "All have been sharpening their claws lately," wrote columnist George Anders. "Market share is most likely up for grabs in a downturn - when some competitors are too hard-pressed to defend their positions vigorously."

Anders goes on to talk about Southwest's rapid growth in Denver since it re-entered the market here two and a half years ago. He talked with Southwest schedule planner Bill Owen, who "says the move into Denver was driven by Colorado's strengthening economy, rather than an attempt to target competitors."

Uh-huh. Our economy is just blowing the roof off these days. If you believe that, I've got a soon-to-be-grounded Frontier Airbus I can get you cheap.

"Rivals have certainly felt the impact of Southwest's arrival," Anders continued. "Frontier Airlines, which uses Denver as its hub, filed for Chapter 11 bankruptcy from creditors earlier this year."

It's been nice these past few years having two discount airlines flying every which way out of Denver. Enjoy it while it lasts.

Comments

  • June 27, 2008

    8:18 a.m.

    Suggest removal

    jetstu writes:

    Does anyone think SWA had some insider trading tips on the fuel epidemic? Seems weird, they are tied to Texas and President Bush.

  • June 27, 2008

    9:54 a.m.

    Suggest removal

    rreute writes:

    from Brendainco:
    Your article in todays RMN "SW takes aim at foundering Frontier Airlines" would lead me to believe you have something out for SW airlines. SW is stepping in where Frontier is stepping out. They are offering the customers an alternative because Frontier has filed bankruptcy. I recently booked a flight from Reno to Denver. I choose SW for the simple fact that they dont charge for their luggage. You can take 2 suitcases per person weighing up to 50 lbs each and there is no hidden fees. Then I found out not only this fact, but SW on time ratio and their rates were better than most of the other airlines. I am glad SW is stepping in to help out the people of the Denver area to have another option and not only be limited to United for most of their flying needs. After reading your article I wouldn't be suprised if you owned stock in Frontier and that's why you are putting down SW airlines.

  • June 27, 2008

    10:41 a.m.

    Suggest removal

    Roca writes:

    heyy lets face it, southwest its only an airline, i prefer to JET with the best in customer service. 6 years in a row JD POWER best customer service airline. Go JETBLUE AIRWAYS. yessss they fly to Denvers, and they are still growing.... Honestly give it a shot. WWW.JETBLUE.COM or WWW.HAPPYJETTING.COM once you go Blue you'll know whats true lol

  • June 27, 2008

    4:49 p.m.

    Suggest removal

    spikefa1 writes:

    I am a dedicated employee at Frontier Airlines. For those of you that support SW you are entitled to do so....but for those of us who are currently employed at Frontier would certainly appreciate support from our home town based airlines passengers as there are many that do so. As for "rreute" who wrote regarding the extra that SW does for you....Please do your research and realize that all airlines are also adding extra charges...
    I am sure that if you were employed by an excellent airline like Frontier that you would do as much as you could do to save your job and the incerdible company that we are! I would think helping out Denver would to be loyal to your local airline as we have many many return passengers.....I am sure the first time SW was late or canceled (and they will) a flight you were on that you would instantly change your mind and come to Frontier Airlines. We and others are not putting SW down we are just saying that Frontier is the beter airlines and we will do what needs to be done to make this work for not only the company but the very loyal passengers that "Love" this airline.

  • June 27, 2008

    7:42 p.m.

    Suggest removal

    Denverboy1 writes:

    I Love Frontier AIr.....Hay there Colorado born and bred.....They have great planes and a great crew . I have been flying them when ever I can will do so for as long as I can...It's my hope they can weather this storm...Find the open sky and kick some more United .....a#$.....As for SW... they are here to stay and fly a good ship but Im A Denverboy...and will fly the Animal as long as she's at the gate...Business is just that and at times we win and other times we don't.....I dont own any stock in any airline...thank God ...But I hope Frontier will make her come back...and make it strong...

    Whats this about Sout West and Bush ????

  • June 27, 2008

    9:36 p.m.

    Suggest removal

    SteveM writes:

    (a) What's this about the City of Denver requiring all employees to use Southwest for city business? Why wouldn't they use our hometown airline?

    (b)rreute and others must be very new to Denver or very young. Southwest used to fly out of Denver. Then it came time to retire Stapleton and build DIA. Southwest booked out of here on the first train. They wanted nothing to do with the landing fees of the new airport. Now 13 years later, they are all too happy to come back to down like saviors because Frontier, United, and others have all paid down the airport debt and the fees are far lower. Had the city been thoughtful, they would have forced Southwest to pay back a pro-rated amount to be distributed among all of the companies that paid. Fair is fair.

  • June 28, 2008

    7:30 a.m.

    Suggest removal

    david.miller writes:

    SteveM, please correct me if I’m wrong, but as I recall, United was initially to have the “A” concourse. United then balked at the deal being offered leaving Continental to fill that void, ultimately returning to play second fiddle. DIA was a great public works project, but that’s about it. It was expensive, inconvenient and poorly managed. In the current context, if DIA management is interested in providing more rather than fewer travel options for the Denver area, then they are/were well advised to ignore your vision of what’s fair. Southwest has demonstrated that it has pretty sound management and a viable business model, meaning that they have historically made and continue to make money when so many others have not or do not. Personally, I doubt Southwest would put up with your notion of what’s fair.

  • June 28, 2008

    1:07 p.m.

    Suggest removal

    prk166 writes:

    Going after Frontier? Why do we believe they're going after just Frontier. UAL's been in a mess for almost a decade. Why should we believe that SWA isn't going after them?

  • June 28, 2008

    11:39 p.m.

    Suggest removal

    warrengfunk7 writes:

    Well, I think a merger might happen between United Airlines and Frontier. Frontier would operate as United's low-cost carrier (United pulled plug on Ted). The merged company would have a very nice sounding name -- United-Frontier.

  • July 3, 2008

    12:48 a.m.

    Suggest removal

    theladyjai writes:

    Well, as a southwest employee I have to say that none of us want to see employees of any airline displaced. We are all human and none of us are immune to what is happening to Frontier or the other airlines that are in trouble... it could just as easily be us. Now turn the mirror around and look at this in another light. If it were another airline that was having hard times and Frontier was it's strongest ever no one would be complaining about their growth or claiming that they were looking to put someone out of business. That's not what anyone wants. It is simply the very nature of business to grow when you are strong and attempt to get the most out of your markets. SW notoriously grows in cities where demand is present and Denver is no different. We got here thwo and a half years ago way before Frontier filed for chapter eleven protection. I understand that people want to support the home team and there is nothing wrong with that. But we are providing more choices for Denver flyers and also many jobs for Denver citizens and the idea that Southwest is trying to put ANYONE out of business is just cruel and wrong.