=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/11/17/f= inancial2106EST7112.DTL ---------------------------------------------------------------------- Monday, November 17, 2003 (AP) AP Interview: Frontier CEO unfazed by Ted CATHERINE TSAI, AP Business Writer (11-17) 18:06 PST DENVER (AP) -- As United moves through bankruptcy and slashes costs, Frontier Airlines = is pushing ahead with expansion plans to nearly double its fleet and workforce by 2008, CEO Jeff Potter said Monday. In a wide-ranging interview with The Associated Press, Potter said there were no plans for major changes with the debut early next year of Ted on Frontier's home turf. "We're at a point where we have to focus the majority of our time on things that we control," Potter said. "It's really a pretty decent position to be in." In the past three months, the No. 2 carrier in Denver has ordered new aircraft, reported profits and gained market share while bankrupt United Airlines cut costs and gave up three Denver gates to the growing carrier. Potter said one of the biggest challenges for Frontier will be managing growth without hurting a culture where everyone from ticket agents and pilots to senior executives have access to the chief executive officer. "One of the cornerstones of our company is, it's a great place to work," Potter said. "People get along. There's a culture and an environment there that for the future is one of the key areas we need to protect. If you grow too fast, grow outside your means, you have the risk of breaking that down. "We're not going to allow that to happen." Long considered an alternative in air travel, Frontier wants to become a carrier of choice. National commercials with talking dolphins and rabbits herald Frontier as "a whole different animal." Its growth comes as low-cost carriers rush to fill a void amid cost-cutting at major airlines. In Denver, Frontier has gained roughly 15 percent of the Denver market, whittling away at a 55 percent market share for United that was once 65 percent. "The window for opportunity for Frontier and other carriers is still open," R.W. Mann & Co. industry analyst Bob Mann said last week. "It's been open wide, and they've been blasting away at it successfully." Frontier launched in 1994 from the ashes of a former airline by the same name and began with two planes and 180 employees. It has 39 aircraft and 3,700 employees with service to 41 cities nationwide and in Mexic. It expects to have 62 aircraft and 6,000 employees by 2008. Pilot Mike Rider, who worked with America West and Continental, has been with Frontier since its first year. "We've gone from a little airline to a medium-sized airline, but people at the top are still very concerned about employees as they've ever been," Rider said. Keeping morale up is particularly important at airlines, RBC Dain Rausch= er Inc. analyst Bob Toomey said. "If you look at the real successful regionals like Frontier, there's a real strong esprit de corps among workers," he said. "These are not a bunch of people who sit at desks. You've got to be motivated, hustle and be efficient. Part of that is having a workforce that's really willing to hustle." Unlike low-cost carriers like Southwest or JetBlue, Frontier has not made major inroads in moving beyond its original Denver hub. While executives have met with cities hoping to gain a Frontier hub, Potter envisions Frontier growing mostly out of Denver as it watches for opportunities. "We've always looked at the next best idea, and today, the next best idea has always been in and out of Denver," he said. He declined to be more specific about markets that the company is eyeing. Blaylock & Partners airline analyst Ray Neidl said Frontier, like all low-cost peers, must manage growth without letting costs get out of hand, and it must recruit the right workers. "So far Frontier is doing that. They've returned to profitability," Neidl said. "It sounds like they're starting to hit their stride." On the Net: www.frontierairlines.com =20 ---------------------------------------------------------------------- Copyright 2003 AP