Frontier Airline Essay Example | Topics and Well Written Essays - 500 words

Frontier Airline - Essay Example The airline has thus faced a number of challenges. First, it has been difficult finding and training adequate number of staff, especially pilots and technicians. Tin general, there are a shortage of qualified staff and the turnover of employees is quite high. Secondly, the airline has had its business disrupted as a result of labor strikes by employees. Most of the workers are represented by unions, and therefore cases of labor strikes are common. Thirdly, there has been an increase in the labor costs in the United States. Given that labor costs make up a significant percentage of the total operating costs, the airline has been pressured to increase salaries and benefits for the workers. This has in turn increased the operating costs significantly. Forth, the airline relies on a single manufacturer for all of the regional jets. One of the major risks is the inability of the manufacturer to provide the required parts and services in good time. Finally, since the airline is affected by the common stock, the price of this stock may flu ctuate as a result of the actions of other partners, competitors or the economy in general. In addition to the above internal challenges, there are external factors associated with the airline industry in general. First, the airline faces competition from other regional airlines operated by major airlines. In addition, some of these airlines offer low fare prices, making it difficult for the airline to attract higher passenger numbers without reducing fare prices. Secondly, the airline industry has generally been affected by a number of labor strikes. Therefore, the new collective bargaining agreements entered into by different carriers generally help to increase industry wages which in turn affect the airline. Thirdly, the recent economic problems experienced in the United States and around the world have impacted the airline’s operations. There has been a