While Denver-based Frontier Airlines may be pulling away from Denver International Airport as a hub, airport CEO Kim Day remains unfazed about the airport’s future.
Frontier has eliminated many routes nationwide, including several at DIA, and earlier this month announced plans to outsource 1,160 Denver jobs in a move the airline says is necessary to stay competitive. This was preceded by Frontier’s April 2014 transition to an ultra-low-cost carrier model, characterized by stripped-down economy fare tickets and a la carte service offerings.
“Sure, they are our hometown carrier and they have stopped hubbing through here … but we’ve seen other airlines in the past few months add capacity,” Day said Sunday, citing Spirit, American and Southwest as examples. “It’s going to be an impact, but the good news for our passengers is we are financially really sound and ready for anything that happens.”
Despite Frontier’s recent decisions, Day is focused on keeping the wheels turning at the airport. DIA plays host this week for more than 600 delegates from around the globe for the eighth annual Routes Americas conference, where airport officials plan to meet with representatives from at least 30 airlines and attempt to woo them into serving the Mile High City.
Routes Americas is part of the larger Routes global aviation conference network focusing on commercial aviation services, tourism and travel accessibility throughout North, Central and South America and the Caribbean. The conference, which runs through Tuesday, gathers representatives from 275 airports and more than 80 airlines for three days of networking and planning that’s been characterized by DIA officials as “speed dating for airlines.”
Serving as host for Routes Americas’ first U.S. conference gives DIA a home-field advantage because delegates will get to experience the city’s hospitality firsthand, including an “American football-themed” party at Sports Authority Field at Mile High for the Super Bowl.
Day said the airport’s focus over the next two days is on landing more direct international flights — especially since DIA is in its 31st straight month of international travel growth — and is looking especially hard at carriers like Turkish Airlines and China Southern Airlines, which serve the key markets of the Middle East and Asia.
In addition to Denver’s strong economy and a young, educated workforce, the people here readily jump on board for new experiences, Day said, which all combines to make the city quite attractive to airlines.
“We have this population that loves to fly and embraces anything. No one in this community could spell Reykjavík five years ago, and now they’re doing house swaps. That’s what our passengers love — give them a new place to go and they’ll embrace it,” she said.
Several airlines at DIA have recently experienced growth. The airport serves as Southwest’s fastest-growing market, and United Airlines has added flights, including direct flights to Tokyo and Panama City.
This growth contributed to Frontier Airlines’ recent decisions, president Barry Biffle said Sunday. And, while Frontier isn’t turning its back on Denver, it makes no sense to concentrate 90 percent of the airline in a “below-average market” at an “over capacity” airport heavily serviced by Southwest and United, Biffle said.
“We’re looking for growth opportunities outside of Denver,” he said. “Denver’s a great city, and we’re based here and we believe we can export that Rocky Mountain hospitality to other markets, but on a fundamental basis, the fares in Denver are lower than average.
“Two-thirds of the U.S. market is very attractive to us at this point, and it’s a really good time to be in this business.”
Although complaints about the airline’s new structure have increased, Biffle feels Frontier is on the right track as “one of the few in the world that have pulled off” a successful transition to the ULCC model. Besides, he said, it comes to each traveler’s decision on how much they want to pay for perks.
“Everybody wants them, but are they willing to pay for it,” he said. “We think we can keep a lot of goodwill with our customers.”
Laura Keeney: 303-954-1337, lkeeney@denverpost.com or twitter.com/LauraKeeney
