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Frontier Airlines Partners with Pepsi


DENVER (Jan. 9, 2003) å- Frontier Airlines (NASDAQ: FRNT) and The Pepsi Bottling Group, Inc. (NYSE: PBG) today announced a new, long-term strategic marketing agreement enhancing the airlineså’ offering of Pepsi products and building the companieså’ marketing alliance. The agreement marks a strategic first for Frontier, as the airline will work directly with The Pepsi Bottling Group to offer inflight beverages to more than three million Frontier customers. In addition to the new inflight choices, the two companies will develop joint promotional programs, leveraging the strengths of the companieså’ respective brands.


As part of the new Pepsi/Frontier strategic alliance, the companies unveiled a travel promotion, which begins this month. The promotion includes a $50 discount coupon on a round-trip for two, which can be found inside all Pepsi 24-packs sold in Denver, Salt Lake City, Phoenix, Omaha, Wichita, and Albuquerque.


With this new partnership, Frontier aircraft will be catered with Pepsi products that include Pepsi-Cola, Diet Pepsi, Mountain Dew, Sierra Mist, Diet Sierra Mist, and an assortment of Schweppes mixers as well as Cadbury’s Dr Pepper and Diet Dr Pepper. In the future, Frontier plans to provide unique sampling opportunities for new Pepsi flavors and brands on select Frontier flights.


“Frontier’s new marketing partnership with Pepsi will make flying more fun, as our customers will have unique opportunities to sample the newest Pepsi products at 35,000 feet. In addition, the partnership makes flying more affordable for Pepsi consumers by offering travel discounts on Frontier flights,” said Sean Menke, vice president of marketing and planning. “At a time when many airlines are reducing services and amenities onboard their aircraft, we are thrilled to partner with a respected worldwide organization that allows us to enhance our inflight service while further streamlining our catering process.”


“We are delighted to extend and expand our partnership with Frontier Airlines, bringing the ‘Joy of Pepsi’ to all of Frontier’s customers,” said Dave DePoy, Vice President, On-Premise Sales for The Pepsi Bottling Group. “This is a tremendous opportunity for Pepsi to add value for travelers through joint marketing programs centered around Frontier`s popular destinations.”

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About Frontier:
Denver-based Frontier Airlines employs approximately 3,000 aviation professionals and is the second largest jet service carrier at Denver International Airport. Frontier and its regional jet partner Frontier JetExpress offer service to 39 cities. Frontier’s fleet consists of 37 aircraft, which feature a single-class configuration. Frontier provides capacity information and other operating statistics on its Web site, which may be viewed at www.frontierairlines.com.


About The Pepsi Bottling Group, Inc.:
The Pepsi Bottling Group, Inc. (www.pbg.com) is the world’s largest manufacturer, seller and distributor of Pepsi-Cola beverages with operations in the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey.

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