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Jul 23, 1998

Frontier Air Commends DOT for Standing Fast on Fair Competition Rules, Not Bowing


DENVER (July 23, 1998) - - Following is the text of a letter delivered today to U.S. Department of Transportation Secretary Rodney E. Slater from Frontier Airlines (Nasdaq: FRNT) President Sam Addoms and Frontier Vice Chairman Paul Dempsey. The letter was sent in conjunction with Frontier's filing of comments today supporting the DOT's proposed guidelines to enhance airline competition:

"Frontier Airlines salutes the U.S. Department of Transportation for standing fast on its plans to ensure fair competition in the airline industry - - despite one of the slickest PR and lobbying campaigns seen in years to deny such benefits to the traveling public.

"Behind this campaign are the nation's giant airlines, which have attempted to portray the DOT's competitive guidelines as a plot to ‘reregulate' the airlines.

"Why Bring Uncle Sam into the act, the big airlines ask, when the system works fine the way it is? Well it doesn't, as Frontier and other smaller airlines found out in case after case of competitive brutality by the major carriers -- ; tactics far outside the boundaries of fair play.

"The majors threw everything in the book at DOT: by pulling political strings...prompting legislative support...buying full-page ads in influential newspapers...staging mass media news conferences...urging ‘grass roots' letter-writing campaigns…setting up front committees to endorse their position, and more. They even put up billboards around Washington showing a disappointed youngster who won't be able to fly to Orlando because, the posters claim, DOT's guidelines will hike up the fare.

"The so-called ‘fight reregulation' campaign, of course, is just plain bunk. The public knows it, DOT knows it, Congress knows it - - and deep down inside, the big airlines know it, too.

"Again, we commend DOT for staying the course through all this. This is one time ‘big money' didn't succeed."

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