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Feb 13, 2002
Frontier Airlines Provides Fleet Plan Update
DENVER (Feb. 13, 2002) - Frontier Airlines (Nasdaq: FRNT) today provided an update to its current fleet plan. The airline announced it has signed an agreement to amend leases on two 119-seat Boeing 737-200A aircraft, which will enable the airline to early return, on Nov. 30, 2002 and Jan. 31, 2003, those aircraft to their lessor approximately 22 months prior to their original lease termination dates. With today's announcement, Frontier expects to have three Boeing 737-200s remaining in its fleet at the end of the airline’s fiscal year 2003.
As a result of today’s announcement, the airline plans to take an unusual charge against earnings in its current fiscal fourth quarter of approximately $3.1 million, after taxes.
"The Frontier team has done a tremendous job with the monumental task of beginning the transition to a new aircraft fleet type, and we are pleased to advance our aircraft transition process with the early return of two Boeing 737-200s. This initiative will help to reduce the cost of operating older aircraft and give us additional flexibility as we continue to explore our fleet options going forward,” said Frontier President and Chief Operating Officer Jeff Potter.
Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport, serving 26 cities coast to coast with a fleet of 29 aircraft and employing approximately 2,500 aviation professionals. In June 2001, BusinessWeek ranked Frontier 14th on its list of Hot Growth Companies and in September 2001, Fortune magazine ranked Frontier 41st on its 100 Fastest Growing Companies list. 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. Frontier provides capacity information and other operating statistics on its Web site, which may be viewed at www.frontierairlines.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Frontier notes that this press release contains forward-looking statements and that certain information contained in this press release involves risks and uncertainties that could result in actual results differing materially from expected results. These statements include, but are not limited to, discussions pertaining to expanding Frontier’s service into new markets. Forward-looking statements represent the Company’s expectations and beliefs concerning future events, based on information available to the Company as of the date of this press release. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: additional incidents that could cause the public to question the safety and/or efficiency of air travel; operational disruptions; industry consolidation; air traffic control-related difficulties; the impact of labor issues; actions of the federal and local governments; enhanced security requirements; changes in the government’s policy regarding relief to the airline industry; the stability of the U.S. economy; the economic environment of the airline industry; the timing of, and expense associated with, expansion and modification of our operations in accordance with our business strategy or in response to competitive pressures or other factors; increased federal scrutiny of low-fare carriers generally that may increase our operating costs or otherwise adversely affect us; actions of competing airlines, such as increasing capacity and pricing actions of United Airlines and other competitors; the availability of suitable aircraft, which may affect our ability to achieve operating economies and implement our business strategy; the unavailability of, or inability to secure upon acceptable terms, financing necessary to purchase aircraft that we have ordered; issues relating to our transition to an Airbus aircraft fleet; uncertainties regarding aviation fuel prices; operational disruptions as a result of bad weather; air traffic control-related difficulties; the impact of labor issues; and actions of the U.S. and local government and regulatory agencies. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Additional information regarding these and other factors may be contained in the Company’s SEC filings, including without limitation, the Company’s 10-K for its fiscal year ended March 31, 2001; the Company’s Form 10-Q for the quarter ended Sept. 30, 2001; the Company’s Form 8-K filed May 7, 2001 and the Company’s Form 8-K filed January 22, 2001, as amended by the Company’s Form 8-K/A filed July 11, 2001.