In February 2012, Frontier Airlines cut five nonstop routes from Milwaukee. This move "reduced Frontier's daily departing flights out of Mitchell International from 32 to 18," or 56%. Frontier announced further layoffs in conjunction with this route change: up to 446 Milwaukee-area employees were affected by the job cuts that occurred between April 15 and April 30, 2012.
In an effort to focus on regional contract flights for major carriers, Republic Airways Holdings announced in January 2012 its intention to sell or spin off Frontier. On January 26, 2012, Republic Airways Holdings appointed former US Airways and Gate Gourmet CEO David Siegel as President and CEO of Frontier Airlines. Republic also added new senior officers for Frontier's finance and commercial team, among other changes in the executive leadership team. Siegel and other Frontier executives moved to Denver where Frontier is headquartered in order to facilitate management of all aspects of Frontier during its separation process from Republic and continue its transformation into an ultra-low-cost carrier.
As part of its plan to stay competitive in reaction to the entry of Southwest Airlines into Denver, the company underwent a reorganization early in 2006. On April 3, 2006, Frontier created Frontier Airlines Holdings (FRNT), a holding company incorporated in Delaware to take advantage of favorable tax laws in that state. The corporate headquarters did not leave Colorado.
jetBlue experienced its first-ever quarterly loss during the fourth quarter of 2005 when the airline lost $42.4 million, enough to make them unprofitable for the entire year of 2005. The loss was the airline's first since going public in 2002. JetBlue also reported a loss in the first quarter of 2006. In addition to that, jetBlue forecasted a loss for 2006, citing high fuel prices, operating inefficiency, and fleet costs. During the first quarter report, CEO David Neeleman, President Dave Barger, and then-CFO John Owen released JetBlue's "Return to Profitability" ("RTP") plan, stating in detail how they would curtail costs and improve revenue to regain profitability. The plan called for $50 million in annual cost cuts and a push to boost revenue by $30 million. jetBlue Airways moved out of the red during the second quarter of 2006, beating Wall Street expectations by announcing a net profit of $14 million. That result was flat when compared to jetBlue's results from the same quarter a year before ($13 million), but it was double Wall Street forecasts of a $7 million profit, Reuters reports. The carrier said cost-cutting and stronger revenue helped it offset higher jet fuel costs. In October 2006, jetBlue announced a net loss of $500,000 for Quarter 3, and a plan to regain that loss by deferring some of their E190 deliveries and by selling 5 of their A320s.
On June 22, 2009, Frontier Airlines announced that pending bankruptcy court approval, Republic Airways Holdings, the Indianapolis-based parent company of Republic Airlines, would acquire all assets of Frontier Airlines for the amount of $108 million. Thus, Frontier Airlines would become a wholly owned subsidiary of Republic. However, 5 weeks later on July 30, Dallas-based Southwest Airlines announced that it would be making a competing bid of $113.6 million for Frontier with intentions to also operate Frontier as a wholly owned subsidiary, but that it would gradually fold Frontier resources into current Southwest operating assets.
jetBlue's first major advertising campaign incorporated phrases like "Unbelievable" and "We like you, too". Full-page newspaper advertisements boasted low fares, new aircraft, leather seats, spacious legroom, and a customer-service-oriented staff committed to "bringing humanity back to air travel". With a goal of raising the bar for in-flight experience, jetBlue became the first airline to offer all passengers personalized in-flight entertainment. In April 2000, flat-screen monitors installed in every seatback allow customers live access to over 20 DirecTV channels at no additional cost.
While its financial performance started showing signs of improvement, in February 2007, jetBlue faced a crisis, when a snowstorm hit the Northeast and Midwest, throwing the airline's operations into chaos. Because jetBlue followed the practice of never cancelling flights, it desisted from calling flights off, even when the ice storm hit and the airline was forced to keep several planes on the ground. Because of this, passengers were kept waiting at the airports for their flights to take off. In some cases, passengers who had already boarded their planes were kept waiting on the apron for several hours and were not allowed to disembark. However, after all this, the airline was eventually forced to cancel most of its flights because of prevailing weather conditions. The fiasco reportedly cost JetBlue $30 million.
In 2014, Frontier announced it would be transitioning into an ultra-low cost carrier. Frontier will also cut several flights and jobs at their Denver hub and transition them to different markets. On January 16, 2015 Frontier announced that it will close both its Denver and Milwaukee call centers, laying off 1,300 employees and outsourcing the jobs to call center company, Sitel, which operates a large call center for Frontier in Las Cruces, New Mexico. As part of its transition to an ultra-low-cost airline, Frontier Airlines joined Spirit and Allegiant in June 2015 in removing its toll-free telephone number for customer service.
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