NEWS & MEDIA
|All News Releases >||General News >|
Aug 1, 2003|
Frontier Airlines Signs Letter of Intent to Purchase Additional Aircraft
DENVER (Aug. 1, 2003) - Frontier Airlines (Nasdaq: FRNT) today announced it has signed a Letter of Intent (LOI) with Airbus for the acquisition by Frontier of 15 additional Airbus A319 aircraft with purchase rights for up to an additional 23 A319 aircraft. Completion of the transactions outlined in the LOI are subject to successful negotiations of an amendment to Frontier's existing purchase agreement with Airbus and the satisfaction of certain other conditions. In addition to the Airbus A319 aircraft ordered under the LOI, Frontier announced that it intends to lease as many as 14 additional A319s over the next five years. At this time no final lease terms have been reached for the 14 additional leased aircraft.
Frontier President and CEO Jeff Potter said, "Nearly three years ago, we began one of the biggest initiatives in our company's history: transitioning our fleet to a brand-new, all Airbus A319 and A318 fleet. This transition, made seamless by the outstanding efforts of our employees, has allowed us to improve our economics and offer a superior product to our customers. With today's announcement, we anticipate capacity growth during fiscal year 2005 of approximately 27 percent."
"It's no secret that this is a challenging time for the airline industry, especially in the United States," said Noel Forgeard, Airbus Chief Executive Officer. "But Frontier has proven that the path to recovery is with the most efficient aircraft possible run by a team that is focused on customer value. We are very pleased Frontier has demonstrated its confidence with a commitment to a new A320 Family order, continuing its path toward an all-Airbus fleet."
The LOI calls for the first firm A319 to be delivered during calendar year 2004, with subsequent deliveries continuing through 2008. The table below provides the planned schedule for the airline's amended Airbus agreement announced today, and includes both the 15 purchased Airbus aircraft and the 14 leased Airbus aircraft. The airline currently operates 19 A319 aircraft, which are configured with 132 seats with a 33-inch pitch. The one A318 operated by Frontier contains 114 seats with a 33-inch pitch. With a successfully negotiated amendment, and upon negotiating lease agreements for the 14 leased aircraft, the airline will have a combination of 62 Airbus aircraft by early 2008.