Frontier Airlines (Nasdaq: FRNT) today announced that it will no longer pay commissions to travel agents for tickets sold in the United States and Canada for travel throughout its network, effective Friday, May 31, 2002 at 10:01 p.m. Mountain Daylight Time. The change also applies to commissions paid on change fees.
The airline`s action follows the lead of the majority of U.S. airlines, which began eliminating travel agency commissions in the United States and Canada earlier this year. Frontier Vice President of Marketing and Planning Sean Menke stated: “When the major airlines eliminated travel agency commissions, we maintained our five percent commission structure with the hope that revenue generated by travel agents would increase enough to justify maintaining the commission program. Unfortunately, this has not been the case and, in fact, reservations attributable to travel agents are trending downward. In order to remain competitive by not incurring costs that our competitors have eliminated, and in light of the extremely competitive environment under which we operate, we believe we must eliminate this cost.”
Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport with a fleet of 31 aircraft and employing approximately 2,800 aviation professionals. Frontier and its affiliate Frontier JetExpress currently serve 31 U.S. cities from its Denver International Airport hub with 150 daily flights. In 1999, 2000 and 2001, Frontier`s maintenance and engineering department received the Federal Aviation Administration`s highest award, the Diamond Certificate of Excellence, in recognition of 100 percent of its maintenance and engineering employees completing advanced aircraft maintenance training programs. In April 2002, Entrepreneur Magazine ranked Frontier one of two “Best Low-Fare Airlines, ” and in September 2001, Fortune Magazine ranked Frontier 41st on its 100 Fastest Growing Companies list. Frontier provides capacity information and other operating statistics on its Web site, which may be viewed at www.frontierairlines.com.