Republic Airways Holdings (RAH) has named airline executive David Siegel as CEO, president and interim COO of subsidiary Frontier Airlines (F9) to lead its restructuring program.
Frontier Airlines A319. Courtesy, F9
Republic Airways Holdings (RAH) has named airline executive David Siegel as CEO, president and interim COO of subsidiary Frontier Airlines (F9) to lead its restructuring program. Siegel is a former CEO of XOJET, Gate Group, US Airways and Avis Budget (ATW, Oct. 1, 2008). Siegel served as lead independent director on the RAH board of directors and will give up that role, remaining on the board.
In May 2011, RAH announced its program to restructure Frontier to reduce costs, improve profitability and ensure the viability of the carrier (ATW Daily News, May 4, 2011). “Siegel’s appointment is another step toward the goal of making Frontier Airlines a viable, strong and independent business,” RAH said in a statement.
RAH is increasing its guidance for year-over-year total revenue per ASM (TRASM) improvement from a previous range of 8% to 9% to a new range of 10% to 11%.
“Our record load factors on Frontier in each month of the fourth quarter, coupled with strong unit revenue growth, led to revenue performance that outpaced not only our previous expectations, but most of the industry as well,” said RAH CEO Bryan Bedford. “The 2% improvement in revenue improves the operating margins by the same amount on our branded operations and also drives an increase in our year-end unrestricted cash balance,” Bedford said.
RAH is updating its guidance on year-end unrestricted cash from a previous range of $200 to $210 million to a new range of $215 to $220 million, according to a company statement.
The company will release its fourth-quarter and year-end earnings at the end of February.