SEATTLE (AFX) - Horizon Air said Wednesday it plans to amend a 12-year contract to fly as a regional carrier for low-cost carrier Frontier Airlines Holdings Inc., and will move planes back into Horizon's own West Coast network.
Horizon, a subsidiary of Alaska Air Group Inc., said it has been flying nine regional jets under the Frontier JetExpress brand since 2004 under the contract. Earlier this month, though, Frontier announced plans to buy up to 20 aircraft for regional service.
Frontier put the flying of those planes out to bid, sending requests for proposals to Horizon and other carriers.
Horizon said it decided that moving its nine planes back into its own network would be a better use of capital. It said it's negotiating with Frontier on a timeline for that return, as the two conclude the contract.
Horizon said the planes would be used on existing and new routes in its system.
Shares of Alaska Air Group rose 40 cents to $38.68 in afternoon trading on the New York Stock Exchange.
Frontier shares gained 47 cents, or 6.1 percent, to $8.22 on the Nasdaq, where they have traded between $5.66 and $10.92 over the past year.
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