| Show Subsidies Needed To Continue Frontier Service Frontier Airlines affirms its willingness willing willing- ness to serve all of its cities but the company cannot continue to serve many of the smaller communities communities' unless substantial substantial sub sub- additional subsidy is provided by bythe the Federal Government to support such costly services I IE IE E. E PAUL BURKE Frontiers Frontier's president ent so summed up the airlines airline's need for immediate financial relief in a presentation presentation presentation pre pre- to members of the Civil Aeronautics Aeronautics Aeronautics Aero Aero- Board CAB in Washington D. D C. C The carrier is faced with a serious ser ious lous economic and financial situation inthe in inthe inthe the operation of its dally daily services to smaller communities where the airline is little used At a time when subsidy payments t to to Frontier Airlines have decreased over overa a million dollars this past year the carrier carrier car car- rier has experienced a net loss of more than 4 million in the first six months months' of this year THE Ii PRESE PRESENT T subsidy formula Is based on on 1966 operating costs which does not provide nearly enough subsidy to sup support t tl the e large volume of service which Frontier is required to provide ov over Tow passenger density short haul rout routes s Said Mr Burke Frontier has attempted attempted attempted at at- tempted to live with the present grossly inadequate inadequate- subsidy formula over a a a. aper period per per- led iod of more than 18 months Recent developments developments de de- including sharply increased operating cost and declining traffic levels have placed the company in a position where it can I no o longer 5 support sUlp s Mr Burke emphasized that Frontiers Frontier's long haul high density jet services are operating at a small profit despite in in- These profits are not sufficient however to offset reductions in subsidy payments which help to support service to smaller communities F FRONTIER E R will conti continue lUe to press for increased subsidy to support its present services If U such subsidy is not provid provide provided ed ed Mr Burke concluded the only alternative alternative al al- is suspension of service to some of Frontiers Frontier's cities and over certain certain cere tain route segments which create the greatest subsidy requirements |
