A recent post on Ben Mutsabaugh’s Today in the Sky blog focused on statements made by Frontier Airlines CEO Sean Menke. Menke told a Denver newspaper: “I have been very vocal about (low-cost carriers) having to be aligned through some form or fashion…and not necessarily through mergers.” That’s not a surprising statement from a Frontier exec because of his airline’s buddy-buddy relationship with fellow budget carrier AirTran. The two help each other with ticketing, destinations served and promotions.
But the current economy and gas prices may make Frontier’s approach to the budget game a model for other LCCs. While some airlines, like Southwest, have the clout to challenge the big boys on their own, most carriers are finding their low-cost business model in jeapordy. Alliances could help when it comes to ticket sales and frequent flier programs, but also with the costs of using airports. A band of small carriers could agree to make a LCC hub at all major airports, sharing gates, ticketing counters, even employees. Helping each other a little could keep them all in the game longer.