Outrigger Hotels and Resorts

Published on Tuesday, November 18, 2014

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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