Saturday, July 5, 2008

Opinions

DENVER - The CEO and president of one of the nation's largest travel agencies is telling customers to avoid advance bookings on Frontier Airlines but an industry expert say that advice is based on opinion, not fact.
In a newsletter, Robert Polk of Polk Majestic Travel wrote in part, "We do not think Frontier will survive in its current configuration. I hate to say this, but Frontier must find someone that will purchase them or they must merge with another carrier to survive... Do you want to tie up your money today for holiday bookings on a carrier that has a possibility of not being here for the holidays?"
Polk contends that Southwest Airlines will continue to eat into Frontier's market share and that Frontier will not emerge from bankruptcy if that continues to be the case.
Frontier Airlines spokesman Steve Snyder says other airlines are losing more money than Frontier and says Polk's decision to single Frontier out is unfair.
"Our capacity and workforce reductions are similar to those of every airline in the country," said Snyder. "If there's a concern about booking away from us there needs to be concern about booking from just about every other airline in the industry."
Evergreen-based Aviation Consultant Mike Boyd cautions fliers about believing any dire predictions.
"Don't listen to this stuff until you get some facts. If someone comes out and says 'XYZ the airlines going to go out of business,' ask why. Get some facts; get some data because Frontier Airlines is an important part of Denver's economy. They're a local team; they do a great job. If someone takes a shot at them you'd better ask, 'Why are you aiming at them?'" Boyd explained.
Polk made it clear that he wishes Denver-based Frontier the best and that this statement is his personal opinion. He also stressed in his newsletter that he has been wrong "once or twice" over the years and in Frontier's case he hopes he is "dead wrong."
Aside from citing his opinion, Polk explained, "Although Frontier's cash position is not decreasing; they are cutting capacity by 17 percent this fall. This will help the carrier survive the slower fall months before the holiday rush hits, but my guess is that advance bookings cannot be strong."
Boyd added, "Any airline today is going to have a problem surviving... Not a single one (airplane) was ever designed for $50 a barrel oil let alone $140

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