Frontier to Build New Heavy Maintenance Facility in Colorado Springs

Frontier estimates the facility will be approximately 100,000 square feet, with about 30,000 square feet of hangar floor space and 45,000 square feet of offices and support shops, as well as 25,000 square feet of warehouse and toolroom space.


DENVER, Nov. 2/PRNewswire-FirstCall/ -- After more than a year of intensive research and in-depth financial analysis, Frontier Airlines Holdings, Inc. (Nasdaq: FRNT) today announced that it will build a new base maintenance facility for Frontier Airlines' heavy maintenance program at Colorado Springs Airport. Although final designs have not been completed, Frontier estimates the facility will be approximately 100,000 square feet, with about 30,000 square feet of hangar floor space and 45,000 square feet of offices and support shops, as well as 25,000 square feet of warehouse and toolroom space. Including parking facilities, the company believes the project will require a site of approximately 11 acres.

Frontier and Colorado Springs Airport are expected to begin the $25million construction project in late spring 2008 and estimate it will take 12 to 18 months to complete. Frontier anticipates financing the construction project and related equipment and tooling purchases through a tax exempt special facility bond offered through the City of Colorado Springs. Frontier will then lease the facility from the City for an initial 30-year period. The new facility will be a base for approximately 225 airline professionals, including mechanics, supervisors, quality control inspectors, and purchasing and material handling staff.

"This is a historic day for Frontier Airlines and one that has been in the making for many years," said Sean Menke, Frontier President and CEO. "We began the latest search for a site in earnest well over a year ago, with many considerations such as the impact the location would have on our employees, as well as a critical review of the financials associated with such a large scale project and potential move from our current leased facility at DIA. In the end, we feel that we have found a great fit in Colorado Springs, both for our employees as well as for our balance sheet. The City of Colorado Springs has proven throughout the review process that they understand the sensitivities our employees have with relocating and they recognized early on that any offer they made would have to be very financially compelling for us to consider it.

"I commend all of the Colorado sites from whom we received proposals. I have no doubt they all put forward their very best packages and we greatly appreciate the time, coordination and sacrifices those proposals represent. Specifically I want to thank DIA and the City of Denver for their efforts. They worked very aggressively to keep our maintenance base in Denver but at the end of the day, the Colorado Springs opportunity was simply a better financial fit for our needs.

"While we anxiously await the start, and ultimately completion of this new state-of-the-art maintenance facility, we are happy to add that we will be able to easily transport our new friends in Colorado Springs to and from ourhub in Denver. While we are still analyzing the appropriate aircraft and frequencies for this service, we are committed to linking Colorado Springs to our DIA hub by late spring of 2008, offering Colorado Springs a one-stop connection to over 60 cities in the U.S., Canada, and Central America via Frontier's mainline Airbus service.

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