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Frontier competition touches off air fare war
United Airlines lowers ticket prices to match competition
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FarkRAPID CITY -- Low-fare carrier Frontier Airlines' planned entry into the Rapid City market this fall has already had a dramatic effect on fares -- at United Airlines.
On Oct. 5, Frontier will launch twice-daily round-trip flights between Rapid City and its Denver hub. A check of the Frontier Web site this week shows that its fares in early October start at $219 round trip for a one-week, Tuesday-to-Tuesday stay.
United, meanwhile, has posted a round-trip fare to Denver at $393 on the same Tuesday-to-Tuesday schedule one week before Frontier's launch.
After Frontier's arrival, the United price drops to -- you guessed it -- $219.
Jeff Kovick, spokesman for United Airlines, said he can't talk about specific pricing.
"I can tell you, generally speaking, that we are always going to be competitive with other airlines in our pricing," he said. "We welcome the opportunity to compete further to give our customers access to over 800 destinations worldwide through United and its Star Alliance partners," Kovick said.
Mason Short, executive director of Rapid City Regional Airport, noted during a news conference Tuesday that the airline industry is a "hyper-competitive" business. The airlines watch each other's fares closely and respond quickly.
Short said he didn't want to speculate on exactly what would happen to overall flights and fares in Rapid City, but he said airline competition is always good for the marketplace.
Jerry Mitchell, an airport board member, predicted that fares would be lower and that fewer people will drive to Denver or other markets to catch planes.
In fact, lower overall fares were one of the reasons that the Rapid City Air Service Task Force pitched its proposal to Frontier Airlines for new service to the Black Hills.
Last winter, Frontier sent out requests for proposals to 65 Western and Midwestern cities that it saw as underserved by existing carriers.
The airline had just ordered 10 Bombardier Q400 turboprop airplanes, a new type of super-quiet, fuel-efficient 74-passenger aircraft that is especially suited for shorter hops to midsize markets, Frontier spokesman Joe Hodas said.
"It's like no turboprop you've ever seen," Hodas said. "It's nice. You will not notice it's a turboprop."
The Q stands for quiet, according Bombardier. It has a computer-controlled noise and vibration suppression system, making it the quietest, most vibration-free turboprop in the sky today, Frontier said.
In the range Frontier will be flying the Q400, it burns 30 percent less fuel with no loss of speed, compared with the popular 50-passenger regional jets. In addition, the company will later add new markets for its regional jets, Hodas said. The jets - the most popular model is manufactured by Canadair - usually seat about 50 passengers.
After the airline's request for proposals went out, 62 of the 65 cities responded, Frontier president and chief executive office Jeff Porter said.
"However, we had to narrow down this great list of opportunities to what will ultimately be about nine new cities that we will serve with the Q400 by December 2007. The first of these new markets -- Wichita, Rapid City and Sioux City -- are dynamic communities that are clearly underserved for low-fare service, and the cities absolutely deserve the high-quality product that Frontier can offer."
Departures from Rapid City will be at 6:20 a.m. and 10 a.m. Arrivals will be at 9:30 a.m. and 10:50 a.m.
All three cities are getting nonstop service to Frontier's Denver hub. In all, Frontier Airlines serves 60 destinations across the United States, Canada, Mexico and Central America.
The original Frontier Airlines operated from 1950 to 1986, when it succumbed to bankruptcy. In 1994, executives from the original airline revived the name and created a low-cost carrier in the style of Southwest Airlines.
A few years ago, Cheyenne, Wyo.,-based Great Lakes Aviation launched Denver-to-Rapid City service with connections to Frontier flights out of Denver. However, after only a year Great Lakes pulled out of the market.
On Tuesday, Short said the difference between Frontier's current effort and Great Lakes' attempt is cost. Great Lakes tried to compete with United and other airlines by using small turboprops that were not as efficient as the Q400s, Short said.
Contact Dan Daly at 394-8421 or dan.daly@rapidcityjournal.com
Bombardier Q400 turboprop airplanes, a new type of quiet, fuel-efficient 74-passenger aircraft that is especially suited for shorter hops to midsize markets, will serve the Rapid City market when Frontier Airlines begins service at Rapid City Regional Airport. (Courtesy of Bombardier)
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