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Fri, Aug 22, 2003

Airbus Announces 15-Plane Frontier Order

Frontier Airlines has placed a firm order for fifteen A319s, at an estimated price in the low-$50s for each. Although Airbus didn't say how the new airplanes will be set up, Frontier's current fleet is made up of 132-seat A319s.

Airbus confirmed the order Thursday, and also detailed some conversion rights that may see Frontier's changing some of those A319 orders into A320s. Frontier is also going to lease as many as 14 more of the Toulouse craft.

Deliveries of both purchased and leased airplanes should start next year; and deliveries of the purchased 'liners will continue through 2008.

The letter of Intent that spawned these orders also included options on purchase of another 23 airplanes, we understand; but Airbus and Frontier didn't comment on that part of the July agreement.

The Airbus statement did not specify whether Frontier Airlines was keeping an option, included in the letter of intent, to buy an additional 23 A319 planes.

Frontier has often said it plans to have over 60 planes in the air by 2008; it may also add a hub. Speculation has so far centered around two recently-neglected cities: Pittsburgh (where the US Airways problems have left holes in service) and St Louis (ditto, TWA's disappearance into American).

FMI: www.frontierairlines.com; www.airbus.com

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