Frontier cutting back flights, staff at Denver
Citing rising airport costs, budget carrier Frontier Airlines is cutting jobs and flights in Denver.
The decision will amount to a cut of about 15 daily flights from Denver in 2015.
In a letter sent to Denver employees, CEO Dave Siegel said cost cutting measures are required to speed up its transformation to an ultra-low cost carrier that will have fewer ‘high-cost, low revenue connecting passengers.’
He also said increased taxes and airport charges at Denver International Airport were a factor.
"As an example, Colorado property taxes have doubled in the last two years and airport landing fees are up by 30% over the past three years," Siegel wrote.
"The cumulative effect of these increasing costs is that connecting traffic is no longer profitable for our airline."
"This may come as a surprise, but we do not receive economic incentives as the hometown airline, adding to our cost burden," the letter continues.
He said while fewer employees will be needed at DIA, a reduction of staff can be achieved ‘through retirements and natural attrition.’
In a statement responding to the news, the airport defended its pricing.
"DIA will remain the third-largest US domestic network, and our airline costs remain competitive as compared to other large hub airports," said airport spokesperson Laura Coale.
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