Denver-based Frontier Airlines informed Branson Airport it will discontinue service at the struggling airport.
Branson Airport Executive Director Jeff Bourk confirmed Wednesday the carrier would not resume its one remaining flight to and from Denver. The announcement comes after Dallas-based Southwest Airlines (NYSE: LUV) exited Branson Airport in June.
Frontier Airline’s seasonal service ended Oct. 25, and it will not pick up in the spring as it has the last four years, said Frontier spokesman Todd Lehmacher.
“The Frontier business model is changing in many ways and the difficult decision to discontinue our service to Branson from Denver comes after careful analysis and evaluation,” Lehmacher said via email. “Historically, Frontier has relied on connecting passengers flowing through Denver.
“We are now focused on delivering ultra-low fares to local traffic via point-to-point service, and at this time Branson doesn’t fit within this shift in strategy.”
Noting the airport known by its code of BKG was informed of the exit a week or two ago, Bourk said the move was not a surprise.
“They’re changing their business model pretty dramatically all across the country, so there’s a lot of markets that have been eliminated because of that,” he said, noting the point-to-point strategy means Frontier only wants to fly from big markets to other big markets with no connecting traffic. “They’re evolving as an airline.”
Bourk said this spring, Frontier ran 18 connections through Denver, but by the fall, BKG had seven.
Bourk said Branson Airport - which continues to be served by charter service Buzz Airways and Branson Air Express - is in talks with other carriers and expects to announce new services and flight paths “relatively soon.”
“Based on the conversations we’re having, I feel optimistic that we’ll have good service in Branson next year, replacing many of the markets that we’ve lost with Southwest and Frontier,” Bourk said. “Losing Southwest and Frontier is not a good thing, but the market changing that has caused that, I believe is also creating opportunity for other carriers.
“I think there’s a lot of carriers that are interested in the market having seen the data that Southwest and Frontier produced here.”
Since the construction of the $148 million private airport in May 2009, BKG posted $21 million in combined net operating losses in its first four years in business. With Southwest on board, in 2013, BKG recorded a $3.9 million operating income – not including depreciation or interest expenses
The airport’s current financial position on paper puts annual revenue at $4.56 million, not including interest and depreciation, with net cash flow of $653,481 in large part due to Dallas-based Southwest’s early year activity and the airport’s pay-for-performance agreement with the city of Branson. Before the exit of Southwest, airport officials had anticipated revenue of $8.3 million this year with total passengers at more than 178,000. That projection fell to 73,600 passengers without the major carrier.
In June 2007, airport organizers secured nearly $115 million in bonds for development, but an April 2011 default on debt service payments led to a funding and forbearance agreement. Airport officials asked for $23 million more in November 2012 in a forbearance amendment. In September, the airport secured a third debt-service extension. The amendment was approved by bondholders and bond trustee UMB Bank.[[In-content Ad]]
Moseley’s Discount Office Products was purchased; Side Chick opened in Branson; and the Springfield franchise store of NoBaked Cookie Dough changed ownership.
