Board-Managed Team Will Assume CEO Duties

Frontier Airlines CEO Dave Siegel has stepped down from the post as customer complaints have continued to rise at the Ultra-Low-Cost carrier.

The duties of CEO will be handled by a two-person team managed by the company's board of directors going forward. The Denver Post reports that Frontier president Barry Biffle said that the leadership change is intended to address multiple operational issues that arose as the carrier transformed into a low-fare airline.

Siegel came on board in 2012, and in 2014, the airline slashed fares but started charging for such things as carry-on luggage, non-alcoholic beverages, and other small items that had previously been included in the ticket price. It also made changes to its popular frequent flier program. All of that generated a large number of customer complaints, and DOT rated the as having the worst on-time performance among the top 13 carriers in the country in a report released Monday.

Biffle, however, said that the management change did not signal a shift in the "Ultra-Low-Cost Carrier" (ULCC) strategy for the airline. He said that many elements of that strategy, including a major restructuring of its presence in Denver, have been successful.

Biffle and board chairman Bill Franke will assume the duties of the CEO, with Franke in a newly-created "office of the chief executive" overseen by the board.

Biffle told the paper that he fully expects the carrier to weather the current issues and regain customer approval while meeting its cost targets by the end of the year. "I don't think people have given up on us yet," he said.

FMI: www.flyfrontier.com