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Frontier IPO on hold over UAL tension - Bloomberg

Published 07/20/2017, 02:05 PM
Updated 07/20/2017, 02:05 PM
© Reuters.  Frontier IPO on hold over UAL tension - Bloomberg

© Reuters. Frontier IPO on hold over UAL tension - Bloomberg

  • The IPO could slip until September or later thanks to an airfare war with United Airlines (NYSE:UAL), reports Bloomberg.
  • Frontier this week laid out plans to add 21 cities to its network and more than double total routes by the middle of next year, all while offering limited-time fares as low as $39.
  • "The old business model (of Frontier) has run out of growth opportunities in the middle of an IPO process,” said United President Scott Kirby on his company's earnings call. The plan, says Kirby, means Frontier is moving toward a network like United's - connecting flights through major airports - rather than the point-to-point service usually offered by low-cost carriers.
  • Kirby: "They’re now competing on our turf and trying to be a network carrier in Denver (Frontier's base) ... That is a battle I guarantee United will win.”
  • Now read: United Airlines: Street Has Overreacted


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