Romulus — Frontier Airlines is positioning itself to expand at Detroit Metropolitan Airport following Spirit Airlines’ exit, as airlines adjust routes to absorb passengers displaced by the collapse of the low-cost carrier.
The Wayne County Airport Authority confirmed that the Denver-based Frontier has formally requested access to Spirit Airlines’ former terminal space at the Warren Evans Terminal, though officials declined to say how many gates the airline is seeking or the proposed lease terms.
“It would be premature to share any details about ongoing discussions or potential lease agreements with Frontier or any other airline,” Cortez Strickland, spokesperson for the airport authority, wrote in an email.
Frontier, meanwhile, said it has already begun increasing service from Detroit and expects additional growth beginning this summer.
In a statement, the carrier said it has restored nonstop service from Detroit to Fort Lauderdale and Las Vegas, routes it had previously operated before pausing them. The airline is evaluating additional changes across its network.
“Our Network Planning team is continuing to evaluate our overall route network to determine future route additions as well, and we anticipate increased capacity from DTW starting in July and through the winter,” Rob Harris, spokesman for Frontier, said in an email.
Frontier’s request comes as aviation experts say Spirit Airlines’ exit from Detroit Metro Airport will reshuffle demand among carriers already serving the market. Those airlines include Delta Air Lines, Frontier Airlines, American Airlines, United Airlines and Southwest Airlines. Travel agents also say airfares have been climbing, with fewer low-cost options and higher fuel costs contributing to costlier tickets for travelers.
“Spirit is gone, however, the market is still over there …” said Selim Ozyurek, assistant professor at Western Michigan University’s College of Aviation. “The other airlines are going to be taking advantage of the existing demand.”
The void created by Spirit Airlines
Spirit previously operated from six gates in the Evans Terminal at Detroit Metro Airport. The airport authority said all former Spirit routes are being served by other airlines operating at the airport. However, the loss leaves a gap in Detroit’s low-cost air travel market.
“The airline was a low-cost carrier with a DTW-based crew and a maintenance hangar onsite,” Strickland said. “While it may be difficult to identify an exact replacement with an identical operational model, all routes formerly operated by Spirit are currently being serviced by other carriers at DTW. Also, our Air Service Development team regularly researches opportunities to increase routes and attract new airlines to DTW.”
Frontier said maintaining a strong presence in Detroit is central to its low-fare strategy, and that competition from budget carriers helps keep air fares down.
“The presence of low-fare carriers in a market forces competition among airlines and reduces the cost of flying for consumers overall,” Harris said.
Travel agents say airfares are elevated compared to last year, driven by a mix of fewer low-cost options and higher fuel costs.
“It’s hard to say if it’s the absolute departure of Spirit, or if it’s a combination of the departure of Spirit and the fuel prices,” said Maggie Burnside, certified travel adviser with Fly Lansing Travel. “I would say it’s probably a good combo of both. They’re differently higher this year than they have been in previous years.”
Burnside said, for example, a Detroit to Cancun flight would have been in the $450-$550 range via Spirit, but a basic economy ticket with airlines like United or American is about $900, up from about $700-$800 on those carriers last year. Delta Air Lines fares are also higher.
“Delta is positioning themselves that way as the premier airline,” said Liz Andrews, certified travel consultant with Fly Lansing Travel. “Not that they don’t want that competition, but they want to give you more for your tickets than just throwing you on the plane.”
David Fishman, president of Cadillac Travel Group, said fares that were commonly in the $300-$400 range last summer are now often running between $600 and $800. He said airlines have reduced the number of flights on some routes to keep planes full and operations profitable.
“The traveling public needs to know that because of less flights, air fares will stay high, as well as obviously because of the fuel prices, and not replacing some of the flights as of yet for (Spirit) being out of the market,” he said.
Frank Holmes, CEO and CIO of U.S. Global Investors, said “the airplanes are still quite packed,” and that discount carriers like Frontier help support competition.
While Frontier is noted as one carrier seeking additional space, airport officials say they are also in discussions with other airlines within the Evans Terminal. They declined to identify them.
The airport authority would also not provide a timeline for when Spirit’s former gates could be permanently reassigned, citing ongoing bankruptcy proceedings.
“WCAA utilizes gates as needed and will seek to lease those gates once the bankruptcy process concludes,” Strickland said.
How the airport is adjusting financially
Despite the loss of a carrier, the airport authority said it does not expect a financial loss from Spirit’s departure. The airline paid the airport authority about $26 million last year through terminal rents, landing fees and other charges, according to the airport authority.
“We routinely adjust to changing operational and industry conditions to meet revenue requirements and maintain financial stability,” Stickland said. “During our mid-year adjustment process, we will reduce expenses wherever possible and increase rates and charges paid by the airlines.”
Ozyurek said airport charges are tied to passenger and flight activity, including operations, terminal use and passenger volumes. He said passenger facility charges are based on the number of boarding and deplaning passengers, which means those fees continue as passengers shift to other airlines serving Detroit Metro.
Delta Air Lines is expected to absorb much of Spirit’s former route demand in Detroit, while Frontier Airlines expands service on overlapping markets due to its existing operations at the airport, said Gerald Cook, an adjunct professor at Embry-Riddle Aeronautical University Worldwide Campus. The adjustment is likely to come through changes such as frequency increases and schedule shifts.
“I don’t think you’re going to see any major disruption or major change in Detroit,” he said.
Southwest Airlines said its current schedule is already optimized through the end of the year across its network based on demand, aircraft availability, staffing and operational reliability. That limits its ability to quickly add new flights, airline officials said.
The carrier said any expansion in one market would require reductions elsewhere, though it will continue monitoring Detroit Metro Airport for potential growth.
Avelo Airlines spokesperson Courtney Goff said the airline doesn’t have immediate plans to expand at Detroit Metro, but if they see an opportunity to expand, they’ll look into those options.
“We’re always communicating with our airport partners on new opportunities,” Goff wrote in an email. “We just extended our schedule through the winter holiday season with seasonal returns for our DTW routes.”
Avelo has many of its existing routes already overlapping with Spirit’s former network but operating from more convenient secondary airports, Goff wrote. Instead of adding former Spirit routes, Avelo said it plans to increase flight frequency on current routes where demand supports it.
Travelers interviewed recently at Detroit Metro say they’re keeping an open mind about alternatives to Spirit.
Gabby Schriver, a 33-year-old from Oxford, was heading to Dallas May 22 with her sister and infant son for her childhood best friend’s wedding. She tried out Frontier Airlines for the first time as the ticket came as part of a bundled travel package booked through a third party.
Schriver said she likely would have avoided flying Spirit Airlines had it still been operating.
“I guess I’m not surprised,” Schriver said of Spirit’s shutdown. “A lot of people have always complained about Spirit. I’ve not had the best experiences.”
She said she remains open to trying Frontier, though.
“Maybe Frontier will be great,” she said. “I’ve just never flown it.”
Schriver said she frequently flies Allegiant Airlines out of Flint Bishop Airport because of the convenience of smaller airports.
“We’ve always had a great experience with them,” she said.
If cost were not a factor, Schriver said Delta would remain her top choice.
“I just feel safe when I fly Delta for some reason, and the staff has always been nice,” she said.
Jay Granberry was traveling to Dallas to visit family recently via Frontier. The Saginaw native, now living in Metro Detroit, said budget airlines like Spirit and Frontier have been options for him in the past.
“If I couldn’t get Southwest or American … I would get Frontier or Spirit,” he said. “I would get Spirit, because it’s cheaper, but now that Spirit isn’t in the conversation anymore, Frontier is definitely probably going to be one of the more frequented ones.”
Granberry said he was surprised Spirit Airlines closed because the carrier had been around for so long.
“Spirit was not terrible, contrary to popular belief, in my opinion,” he said.
He said he would like to see United or American expand at Detroit Metro Airport, favoring each for “price and experience.”
“You get the middle, a medium of both,” he said. “You’re not sacrificing one for the other like a lot of times.”
Despite issues with Frontier in the past regarding longer layovers, Granberry said he is giving the airline another try as a low-cost replacement for Spirit.
“Let’s just hope Frontier lives up to them as far as their reputation,” he said.
cwilliams@detroitnews.com
This article originally appeared on The Detroit News: Frontier bids to expand in former Spirit space at Detroit Metro Airport
Reporting by Candice Williams, The Detroit News / The Detroit News
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