Here is a bit of good news for the stand-alone Frontier Airlines:
What do you tink about that Oscar? ;\
CEO Siegel: Frontier Airlines on course to profitability; could bring jobs back to Denver
Denver Business Journal by Ed Sealover, Reporter
Date: Thursday, October 18, 2012, 2:41pm MDT
Enlarge Image Courtesy Frontier Airlines
Frontier Airlines president/CEO David Siegel (file)
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Ed Sealover
Reporter- Denver Business Journal
Email | Facebook | Twitter | Capitol Business blog Frontier Airlines is headed to its first profit in roughly a decade and is continuing to negotiate with city and state government leaders over tax breaks that could lead the company to bring hundreds of jobs back to Denver, president/CEO David Siegel said Thursday.
Siegel in January was appointed the first CEO of the Denver-based airline since Republic Airways Holdings Inc. bought Frontier out of bankruptcy in late 2009.
Speaking at the Denver Business Journal’s Power Book awards luncheon, he emphasized the airline wants to reconnect to Denver. It has pulled sponsorships from other cities to refocus on the Mile High City and has started a program to donate a portion of on-board sales each month to a local charity, he said.
But what the airline really wants to do is consolidate employees, including several hundred maintenance workers and dispatchers now working in other states, in Denver, Siegel said.
To do that, however, it is negotiating for changes in several taxes it would have to pay in order to make the move fiscally viable for Indianapolis-based parent company Republic — changes that especially are important because Frontier’s primary competitors at Denver International Airport, United Airlines and Southwest Airlines, have tax advantages in their headquarters states, he said.
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> DBJ Special Report: Frontier Airlines and its turbulent journey
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“The one disappointment or the one challenge we have is the recognition there are certain tax issues we have to bring those jobs back to Colorado and Denver,” he said. “I am dealing with the same board that moved everything to Indianapolis, so I am challenged to make the case to bring these jobs back to Denver.”
Siegel did not specify which taxes are the hindrance, but a person familiar with the discussions told the DBJ in February that they involve Denver’s sales and use tax on heavy maintenance parts, the city’s “software tax” and city and state aviation fuel taxes.
Siegel did thank Colorado Gov. John Hickenlooper and Denver Mayor Michael Hancock for being “incredibly supportive and helpful as we’ve tried to work through these relocation issues.”
Siegel also said that as Republic officials look to sell Frontier or spin it off as an independent company, Frontier is having one of its most successful years financially in a long time.
“This year should be our first profitable year in about 10 years — not a large profit, but hopefully a profit,” he told the audience at the Marriott City Center.