US low cost carrier Frontier Airlines expects to cut operational costs as soon as it begins replacing its Boeing737-200/300 fleet with Airbus A318s and A319s later this year.
The Denver, Colorado-based airline will introduce the A319into service in June, and take delivery of three purchased and three leased aircraft during the fiscal year ending 31 March, 2002. Operating leases on Frontier's current fleet of seven 737-200s and 18 -300s begin to expire in April next year.
Frontier has 12 A318s and A319s on order for delivery by September 2004 plus nine on option for delivery in 2003-5, and options on eight more yet to be assigned delivery dates. The airline also plans to lease one A318 and 15 A319s for delivery between June this year and October 2004.
Transition from the 737 to the Airbus types had been expected to cost $6 million a year over the next two fiscal years, "but we have been able to reduce that to $4.5 million", says president Sam Addoms.
Airbus will provide simulator pilot training, but Frontier will have to hire additional pilots, mechanics and flight attendants while its flight and ground crew go through differences training.
Fuel savings are expected to be $27,000 per month for each aircraft, and maintenance savings in excess of $50,000 per month in the first year and $35,000 per month in the second. Frontier also expects a $35,000 per month saving in reserves set aside to cover long-term maintenance.
Offsetting these savings will be higher ownership costs (expected to be $30,000 per month for every aircraft) and higher landing fees for the heavier A319 ($10,000per month).
In the aggregate, Addoms says, the net savings of moving to the Airbus aircraft are expected to be roughly half the transition costs in the first year, and nearly double the transitions costs in the second.
Source: Flight International
