=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/05/12/f= inancial2057EDT0189.DTL --------------------------------------------------------------------- Wednesday, May 12, 2004 (AP) Consumer comes out ahead in early days of Frontier-Ted battle SANDY SHORE, AP Business Writer (05-12) 17:57 PDT DENVER (AP) -- The consumer has become the early champion in the battle between Frontier Airlines and Ted. Since United Airlines' discount carrier took off three months ago, representatives of both airlines say they are doing well in the competitive Denver market, noting an increase in passengers and capacity. While analysts say it is too early to tell which airline will come out ahead ultimately, they acknowledge the carriers are working hard to attract customers. "The consumer is paying the same fares they were before," said aviation analyst Mike Boyd of The Boyd Group. "Both of those airlines really do have good customer service, and now they're trying to make sure they have better customer service." Boyd said competition between the airlines has both working harder to ke= ep passengers happy, in the air and on the ground. Ted began flying Feb. 12 in a challenge to discount carriers such as Frontier that have been taking customers from United, part of UAL Corp. Ted and Frontier, both based in Denver, compete on routes from Denver to eight cities from Florida to California. Ted replaced United on those routes and uses United equipment and employees. Ted made a profit in March, its first full month of operation, Ted vice president Sean Donohue said, but he declined to disclose details, citing competitive reasons. Its load factor, a measure of the number of seats filled, was 89 percent in March and 80 percent in April. On the same routes in 2003, United's load factor was in the mid-80 percent range, Donohue said. "We're absolutely gaining market share," he said. "We're adding capacity, but our booking growth is exceeding our capacity growth. "We're very, very satisfied," he said. To Frontier chief Jeff Potter, the competition is the same, whether it is against United or Ted. "The behavior is relatively the same as we experienced with United primarily from a pricing or fare standpoint," Potter said Wednesday at the Bear Stearns Global Transportation Conference. "They've always matched our fares. Ted matches our fares. With few exceptions -- there are some isolated examples -- that behavior remains unchanged today." Frontier's passenger numbers increased 42 percent in March from March 20= 03 and 33 percent in April from the previous April, spokesman Joe Hodas said. Its load factor was 74.9 percent in March, up from 65.7 percent in March 2003. In April, the load factor was 69.1 percent, up from 60.9 percent in April 2003. At Denver International Airport, Frontier's market share increased to 16= 3 percent in March from 12.6 percent in March 2003, the latest figures available. The combined United-Ted market share was 48 percent in March, down from 52.8 percent in March 2003. "We're continuing to grow and continuing to gain market share," Hodas said. "In terms of the impact Ted is having, it's nonexistent." "If it was a new airline bringing in new service that didn't exist prior, then that obviously would draw some capacity against our service," he said. The two airlines compete on routes to Phoenix; Fort Lauderdale, Orlando and Tampa in Florida; New Orleans; Las Vegas and Reno in Nevada; and Ontario, Calif. On the Net: Frontier: www.frontierairlines.com/ Ted: www.flyted.com/ ---------------------------------------------------------------------- Copyright 2004 AP