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Frontier Air to Make Further Cuts

Where there was once stiff competition and competitive airfares there are now cuts in service and price hikes.  Frontier Airlines is once again cutting service, this time in Milwaukee, and with that comes an increase in fares.  In fact, airfares in Milwaukee are rising faster than the national average and there the amount of competition is shrinking even further now that Southwest Airlines is absorbing AirTran.  Timothy Sheehy, president of the Metropolitan Milwaukee Association of Commerce, said there will always be a certain level of demand for flights, but with decreased service passengers will experience fewer direct routes and higher prices.
Mitchell International Airport saw an increase in domestic fares of 8.6% during the third quarter of 2011 compared to the same period the previous year.  This resulted in an average airfare for Milwaukee at $285 for the three month period ending at the end of September, 2011.  The national average increase was 6.2% with a fare of $361.  Jay Sorensen, a former Midwest Airlines marketing manager and operator of IdeaWorks, a Shorewood travel industry consulting firm, said that this trend will continue since the fares had gotten so low that they became unsustainable.  Fares will go up because they have to.  Frontier will be smaller than its competitor, Southwest Airlines/AirTran, with a total of 57 daily flights out of Milwaukee.  Even in its hub, the Denver International Airport, it comes in at number three behind Southwest and United.
Frontier reported an operating loss in the first three quarters of 2011 and that contributed to Republic Airway Holdings Inc. total loss of $28.3 million.  They are looking for a buyer for the airline, but Sorensen says they will not find one because there is nothing left to buy.  A spokesperson from the airline said that the airline is trying to ensure it is sustainable and their focus is on the markets that are strong.

See the original Google News article for more details.

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