The folks at Frontier announced their summer schedule yesterday, and there are a whopping 7 new cities joining the Frontier network. You know what they have in common? Not a single one of them is served by Southwest. Ah, very smart.

Here’s the list of newbies:

• Branson (Missouri)
• Grand Rapids (Michigan)
• Green Bay (Wisconsin)
• Long Beach (California)
• Madison (Wisconsin)
• Newport News (Virginia)
• Santa Barbara (California)

As you can see, not only are these not served by Southwest currently, but it’s highly unlikely that Southwest will start serving them any time soon. That’s a good strategy. And it won’t surprise you to know these are all being served by Embraer 190s. Those planes provide much greater comfort than the Bombardier regional jets that United flies on some of these routes and they’re much smaller than anything Southwest operates.

Long Beach is obviously the most exciting to me personally. Six slots were raffled off and Frontier picked up two. Allegiant also picked up two, and I find myself wondering what the heck they’re going to do with them (if anything) while SkyWest and JetBlue picked up one a piece. Southwest certainly won’t be coming in to Long Beach, though United could use commuter slots if they really wanted to fight Frontier.

Branson is the other really interesting one to me. When I visited those guys in 2008, Denver was one of the big markets they identified as being important to them. Sure enough, they’ve found their Denver entrant, the only flight that goes west from the new airport. It’s only operating four days a week for now, and I think it’s a good test. Even better, I know Branson has no qualms about offering exclusivity, so there’s no threat of competition coming in if it works out, at least not for awhile.

Newport News may seem kind of goofy, but I imagine there’s a fair bit of traffic on Lockheed Martin alone between the two cities. It just might work with all the military stuff going on there.

Grand Rapids, Madison, and Santa Barbara already see service from United Express, but that clearly doesn’t concern Frontier, and for good reason. They’re looking at different flight times and sometimes superior aircraft.

Grand Rapids sees a single daily Embraer 170 from United Express. Frontier will run it once a day at opposite times, so it provides a good balance. The equipment is basically the same on the inside, but the different times should help this out.

Madison and Santa Barbara are different. United flies Madison three times a day, but two of those are on cramped 50 seat CRJs and one is on an only slightly less cramped CRJ-700. That’s two long hours on those little tubes. Santa Barbara is similiar although it only sees two flights a day. So now Frontier can come in with one a day to Madison and two a day to Santa Barbara and provide a much better experience for a two hour flight.

They really are focusing on the onboard experience here, which is funny because they still haven’t addressed the fact that the onboard experience is much different on the Airbus aircraft with LiveTV than on the Embraers without. Why do I say they’re focusing on the onboard experience? The new routes are only part of the change here. They are also getting rid of their turboprops entirely – Lynx is toast. Yes, the 11 Q400s will go away and they will be replaced by either Embraer 190s or the smaller Embraer 170, something that hasn’t been seen flying out of the Denver hub yet. In the process, both Fargo (North Dakota) and Tulsa will lose Frontier flying completely.

Why are they doing that? In their words, “The transition to jet service will improve the Company’s ability to operate in highly contested markets in which the Q400 operates at a competitive disadvantage to jet service offered by competitors.” My guess is that they couldn’t find enough profitable markets in the West and figured the fleet was so small, they might as well just kill it off instead of trying to port it around the country looking for markets. Too bad. I like that plane.

They are also getting rid of their 7 orphan CRJ aircraft. They fly a boatload of Embraer regional jets, but they had this once 24-strong CRJ fleet buzzing around for Continental for awhile. It’s now down to 7, and there’s no reason to keep that either, so they can now unload one certificate (Lynx) and two aircraft types.

Lots of changes here, and I like what I see. Adding those non-Southwest competitive markets will not only strengthen the fares they get onboard the local flights, but it will also help with the mix on the flights to big cities. It will help them fight Southwest by not fighting Southwest. See, the more flights they have in these smaller markets, the more flights they can support in the larger ones even with the competition.

This is really the closest I’ve seen to a low cost carrier operating a true hub and spoke model. They have the large markets covered, and now they’re looking at the smaller ones. United should be concerned. I look forward to seeing their response.

Notes:
*Original Frontier Airbus photo via Flickr.
*I recently began a short term social media consulting stint with Long Beach Airport (full disclosure and all). It’s noted on my code of ethics page.

I had heard rumblings of this nearly six months ago, but now it’s official. United is offering one way award redemptions, and we should all be happy about that. Not only that, but they’re letting you pay with cash plus miles. These changes make your Mileage Plus miles much more useful, but of course, there are some restrictions. Let’s dig in a little bit more.

American has been doing one way awards for awhile, and my guess is that’s what spurred United to follow as well. Even though Delta may be the largest airline around these days, American and United have always seen each other as chief competitors. The shared O’Hare hub and long history certainly contributes to the rivalry. So United is matching American with one way awards and stepping up with cash plus miles.

Like American (and unlike some international carriers), United will simply charge you half the number of miles required for a roundtrip ticket to go one way. That means you can get a one way domestically for only 12,500 miles. This makes your miles much more useful.

For example, when we found an inexpensive one way fare to Indiana for the holidays, we wanted to use miles to get back home. I actually would have preferred to use my United miles, but they didn’t have one way awards. So I used American miles instead. Now I have a choice.

This also creates an opportunity to mix and match awards. Before this change, if you found saver awards available one way but only standard (double price) awards the other, you have to pay the full standard award amount. But now, you can simply buy two separate one way awards at different levels. That saves you a lot. You can also go one way on United and the other way on American, if availability dictates it.

But what if you don’t have enough miles for your trip? Well, you can use miles plus points. This to me seems like the beginning of moving toward a revenue-based mileage system. Right now, it looks like the miles and cash are zone-based, but eventually I would bet it would be able to move toward a dollar per mile valuation. Let’s see how it works now.

A roundtrip from LAX to Chicago is 25,000 miles on random dates. You can also do 15,000 miles plus $110 (actually $131 after taxes). The same award from LAX to New York is 15,000 miles plus $120. For LAX to San Francisco, it’s 10,000 miles plus $90. Nonstops versus connections don’t seem to make a difference, but these are only available on roundtrip saver awards on some routes. So it is restricted now, probably to see how it works.

Is this a good option? For LAX to San Francisco, I’d say not at all unless you’re traveling at the last minute. If you bought a ticket on those flights today, you’d save $83. That means you’re getting less than a penny per mile. For the JFK option, you’d save $266 so that’s up near 2 cents a mile. The point is, you really need to look at your specific flight to see how much it would cost to just buy it. You just can’t make a blanket statement here.

No matter what, this is a really nice option to have. I know some people are sad that this means the death of stopovers (you now need 3 one way awards), but that’s only for awards using United. If you do Star Alliance awards, then the old rules are still in tact.

This adds a lot of value for fliers and doesn’t take much away. I always like to see that.

US Airways Pilots Infighting Grows Worse by the Day – BNET
It appears the US East pilots are tired of fighting the west pilots. Now they’re turning on each other. Unreal.

Airline Capacity Cuts Slow in December, Some Carriers See Growth – BNET
December traffic numbers show some interesting trends.

United Pushes International Presence with Muddled Marketing Message in Denver Fight – BNET
United is heading back to its Independence Air playbook in its fight in Denver.

Boeing’s Loss of 787-3 Orders is Good News – BNET
When is a canceled order a good thing? When it allows Boeing to walk away from the 787-3.

Sean Menke Leaves Frontier Airlines, This Can’t Be Good – BNET
Sean Menke is leaving Frontier and Republic, and that doesn’t bode well for the airline.

Mesa Air Group has finally filed for Chapter 11 bankruptcy after a very long downhill slide. I imagine that there’s not a single person in the airline industry surprised by this move. What does this mean for you, the traveler? Nothing. Yet.

This is a Chapter 11 filing, so Mesa is hoping to restructure itself and slash its fleet from 177 to 101 airplanes (PDF). I spoke with Paul Skellon, VP of Mesa’s go! subsidiary, and he assured me that this isn’t like most bankruptcies you see. They have enough cash to cover their operation so they don’t actually need any debtor-in-possession financing. It seems that this filing is all about breaking contracts – they want to ditch a bunch of airplanes that they aren’t using and get lower rates on the ones they’re keeping.

Right now, Mesa has 177 airplanes to its name. Incredibly, a whopping 52 of those are parked:

• 20 Beechcraft 1900 19 seat turboprops haven’t been used for a long time
• 3 Bombardier Dash-8 turboprops have joined them
• 17 Bombardier CRJ-200 50 seat jets are sitting in the desert
• 12 Embraer ERJ-145 50 seat jets are parked

In addition to that, United will be ending its contract for 7 Dash 8s and 18 CRJ-200s in the near future. Mesa says it wants to ditch those 76 airplanes. That will leave them with a mere 101 airplanes left as follows.

• 6 Bombardier Dash-8s with US Airways
• 8 Bombardier CRJ-200s with US Airways
• 5 Bombardier CRJ-200s with go!
• 22 Embraer ERJ-145s with Delta
• 2 Embraer ERJ-145s subleased out
• 20 Bombardier CRJ-700s with United
• 38 Bombardier CRJ-900s with US Airways

Now, the question is this . . . will they survive? It’s in the hands of the judge. United and Delta have been ending contracts with Mesa as quickly as possible, so you know they’d be happy to walk away and have someone else take over this flying. An April 2009 prospectus last year noted that if either Mesa or its codeshare partners (US Airways, Delta, United) file bankruptcy, the other party can terminate. Paul Skellon wasn’t able to comment on whether this clause was still in effect, and my calls to other people at Mesa went unanswered. I heard back from Brian Gillman, Mesa’a EVP, General Counsel, and Secretary and he confirmed that those bankruptcy clauses are unenforceable. They are only included in case the laws change in the future.

This is a bit of a gamble for Mesa. Even if they don’t need the money and they can get around the bankruptcy clauses, they still need the bankruptcy judge to agree to let them break their contracts. The largest unsecured creditors are aircraft lessors and owners: Wells Fargo, Bombardier, Embraer, and GE, companies that all have larger relationships with Delta, United, and US Airways. Would any of them really be adversely impacted if Mesa disappeared? Probably not. They could just find someone else to do the flying. I wonder how the judge will feel about this.

I could see ExpressJet jumping at the chance to operate the ERJs in exchange for a long term deal with Delta. And Republic and SkyWest/ASA would probably fight for at least a piece of the business as well. I just don’t see who wins by having Mesa survive except for Mesa itself. If the judge decides not to let them break contracts, then this could turn ugly.

That, of course, doesn’t mean Mesa won’t come out of this in the end. Even if Mesa doesn’t make it out, I imagine that one piece will survive – go!, the one piece that isn’t involved in the bankruptcy filing. Now that go! and Mokulele have combined in a joint venture, they’ve become the only major competitor to Hawaiian within Hawai’i. Maybe Island Air would be interested in stepping up, but really, there is room for a second airline and right now, that’s go!

If you’re booked on a Mesa-operated flight, I wouldn’t worry. I asked Delta, United, and US Airways if they were allowing people to change from Mesa-operated flights to other flights. As expected, they aren’t. Nothing is changing . . . yet.

So we’ll see how this bankruptcy case goes. It’s definitely a unique situation, and I’m curious to see how it plays out.

Updated 1/7 @ 1257p to reflect Mesa’s comment on the bankruptcy clause in contracts

New York Snowstorm Sees Delta Start Canceling Earlier Than JetBlue, American – BNET
You may have been stranded but from an operational perspective, the airlines did pretty well at JFK during this major snowstorm.

US Airways and Continental See Different Fortunes with United at Washington/Dulles – BNET
As Continental ramps up Dulles, US Airways cuts back. Clearly they’re each seeing different opportunities with United.

Three Reasons Why Delta Slashed First Class Fares Between New York and the West Coast – BNET
Delta made some pretty steep cuts to First Class fares between New York and LA/SF last week. Here’s why I think they did it.

Airlines find coach travelers willing to pay extra for perks – Chicago Sun Times
This week, the Sun Times took on the issue of fees, and I was asked to comment.