Frontier stalls IPO in the face of airfare brawl with United
Frontier Airlines pushed back its IPO, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United. The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings, which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as Q2, people familiar with the matter said in March. The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United. Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39. On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-07-21/unaligned/frontier-stalls-ipo-in-the-face-of-airfare-brawl-with-united
https://portal.staralliance.com/cms/logo.png
Frontier stalls IPO in the face of airfare brawl with United
Frontier Airlines pushed back its IPO, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United. The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings, which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as Q2, people familiar with the matter said in March. The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United. Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39. On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers. <br/>
