Frontier Airlines Expands MCPHSM Agreement with GE Engine Services

November 04, 2004

EVENDALE, Ohio - Frontier Airlines has signed a 16-year MCPHSM (Maintenance Cost Per HourSM) agreement with GE Engine Services for the maintenance, overhaul and repair of 69 CFM56-5B* engines powering 32 Airbus A318 and A319 aircraft in the airline's fleet.

The maintenance agreement has a potential value of more than $100 million to GE over the life of the contract. The new agreement brings to 62 the total number of Frontier aircraft supported by GE. The airline signed a similar MCPHSM agreement with GE in 2002 to support 30 leased and owned A318s and A319s.

The advantage of GE's MCPHSM program is that it maintains engines on a flat rate per engine flight-hour basis, enabling airlines to accurately forecast operating costs, reduce cost of ownership and improve asset utilization. Maintenance and restoration work will be conducted at GE's Strother Field facility near Arkansas City, Kansas USA.

Currently in its 11th year of operations, Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport with a fleet of 45 aircraft and employing approximately 4,500 aviation professionals. Frontier, in conjunction with Frontier JetExpress operated by Horizon Air, operates routes linking the Denver hub to 43 destinations in 24 states spanning the nation from coast-to-coast and to five cities in Mexico. Frontier's maintenance and engineering department has received the Federal Aviation Administration's highest award, the Diamond Certificate of Excellence, in recognition of 100 percent of its maintenance and engineering employees completing advanced aircraft maintenance training programs, for five consecutive years.

GE Transportation - Aircraft Engines, a part of General Electric Company (NYSE: GE), is one of the world's leading manufacturers of jet engines for civil and military aircraft.

*CFM56-5B engines are produced by CFM International, a 50/50 joint company of Snecma Moteurs and GE.