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Nov 2, 1999
Frontier Airlines Announces New Commision Structure
DENVER (Nov. 2, 1999) - Frontier Airlines (Nasdaq: FRNT ) today announced it will implement a new travel agency commission structure, effective 12:01 a.m. on Nov. 5, 1999. Tickets issued by non-online travel agencies will earn a five percent base commission, with no maximum commission cap. The new rate structure applies to all tickets issued on Frontier, including miscellaneous charge orders (MCOs) and prepaid ticket advices (PTAs). Additionally, any tickets issued by online travel agencies based in the U.S. (including Puerto Rico and the U.S Virgin Islands), Canada and Mexico will earn a base commission rate of five percent.
The airline's action follows the lead of most major U.S. airlines, which recently implemented the new structure. "We value the contributions of the travel agent community," said Frontier Vice President of Marketing Jeff Potter. "But we also recognize that in order to succeed, Frontier must remain competitive with other airlines from a cost standpoint."
Denver-based Frontier Airlines commenced operations on July 5, 1994. Unlike other airlines, Frontier's low fares do not have a Saturday night stay requirement. In addition, Frontier offers frequent flyer miles in Continental Airlines' OnePass® program. The airline currently serves 21 cities coast to coast with a fleet of 19 Boeing 737 jets and employs approximately 1,800 travel professionals. Frontier was recently named "Best Domestic Low-Fare Air Carrier" by Entrepreneur magazine in the publication's sixth annual Business Travel Awards. Ernst & Young LLP recently presented Frontier Airlines with the Rocky Mountain Region Entrepreneur of the Year® Award in the services sector. Frontier's Web site may be viewed at http://www.frontierairlines.com .