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Frontier Airlines cuts second-quarter capacity plans

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Indianapolis-based Republic Airways Holdings Inc. said Monday that it is reducing growth plans for its Frontier Airlines unit because of uncertainty about future oil prices.

Frontier's seat capacity will be flat in the second quarter, rather than expanding by 1.5 percent to 2.5 percent as the airline had previously planned. The number of passenger bookings is ahead of last year and revenue is climbing, the company said. However, the price of jet fuel — the largest expense at most airlines — has been rising dramatically with the price of oil.

Oil hit a two-year high early in the day, nearing $107 a barrel, after forces loyal to Libyan leader Moammar Gadhafi launched airstrikes against opposition fighters at an oil port. The market has been shaken in recent weeks by the uprising in Libya and its effect on oil prices. A sustained rise in the price of oil could hurt the economic recovery by raising manufacturing and transportation costs.

Delta Air Lines Inc. and AMR Corp.'s American also have said they will scale back their capacity growth plans this year.

Frontier's February traffic rose 2 percent, to 852.6 million revenue passenger miles, or one paying passenger flown one mile. Capacity, or the number of seats available, fell 3 percent, to 1.11 billion available seat miles.

With traffic up and capacity down, its planes were fuller. Load factor rose 4 percentage points, to 77 percent.

For the first two months of the year, Frontier traffic is up 3 percent, to 1.76 billion revenue passenger miles. Capacity fell 3 percent, to 2.32 billion available seat miles. Load factor rose 5 percentage points, to 76 percent.

In addition to Frontier, Republic also flies under contract for major airlines. Republic's traffic across its whole operation, including Frontier, fell 1 percent in February, to 1.4 billion revenue passenger miles. Capacity also fell 1 percent, to 1.93 billion available seat miles, which helped lift load factor 1 percentage point, to 73 percent.

For January and February combined, Republic saw traffic fall 1 percent, to 2.9 billion revenue passenger miles. Capacity fell 3 percent, to 4.04 billion available seat miles. Load factor rose 2 percentage points, to 72 percent.

Republic shares fell 3 cents to close at $6.02 each.

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  1. As I understand it, the idea is to offer police to live in high risk areas in exchange for a housing benefit/subsidy of some kind. This fact means there is a choice for the officer(s) to take the offer and receive the benefit. In terms of mandating living in a community, it is entirely reasonable for employers to mandate public safety officials live in their community. Again, the public safety official has a choice, to live in the area or to take another job.

  2. The free market will seek its own level. If Employers cannot hire a retain good employees in Marion Co they will leave and set up shop in adjacent county. Marion Co already suffers from businesses leaving I would think this would encourage more of the same.

  3. We gotta stop this Senior crime. Perhaps long jail terms for these old boozers is in order. There are times these days (more rather than less) when this state makes me sick.

  4. One option is to redistribute the payroll tax already collected by the State. A greater share could be allocated to the county of the workplace location as opposed to the county of residency. Not a new tax, just re-allocate what is currently collected.

  5. Have to agree with Mal Burgess. The biggest problem is massive family breakdown in these neighborhoods. While there are a lot of similiarities, there is a MASSIVE difference between 46218 and 46219. 46219 is diluted by some stable areas, and that's probably where the officers live. Incentivizing is fine, but don't criticize officers for choosing not to live in these neighbor hoods. They have to have a break from what is arguably one of the highest stress job in the land. And you'll have to give me hard evidence that putting officers there is going to make a significant difference. Solid family units, responsible fathers, siblings with the same fathers, engaged parents, commitment to education, respect for the rule of law and the importance of work/a job. If the families and the schools (and society) will support these, THEN we can make a difference.

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