One of America’s top budget airlines has a new leader.
Frontier Airlines announced Thursday that it has appointed James Dempsey as its new CEO, following the departure of longtime CEO Barry Biffle late last year.
Dempsey, who has served as interim CEO since December, will now take on the role permanently.
The move comes at a critical time for the Denver-based ultra-low-cost carrier.
Shortly before the holidays, reports surfaced that Frontier was once again in talks about a potential merger with top budget rival Spirit Airlines, which is currently in Chapter 11 bankruptcy proceedings.
Meanwhile, Frontier is about to launch its first first-class seat and overhaul some elements of the business model it has used over the past two years. The moves come as the low-cost airline industry faces headwinds as consumers demonstrate a persistent willingness to pay more for premium seats, a hallmark of traditional rivals.
At the same time, Frontier is also working to strengthen its Frontier Miles loyalty program and increase the appeal of its co-branded credit cards — key elements of nearly every major airline’s business model today.
Read more: Frontier Miles Elite Status: What It Is and How to Earn It
It’s unclear how leadership changes at the top of Frontier will affect those moves.
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Dempsey is an industry veteran who has held leadership roles at Frontier for more than a decade, most recently serving as the airline’s president.
Before that, though, he served on the leadership team of an airline that frequent international travelers may be very familiar with: European low-cost carrier Ryanair.
“His expertise will help us seize future opportunities, maintain our industry-leading cost advantage and guide Frontier into the future,” Frontier Group Holdings Chairman Bill Franke said of Dempsey in a statement announcing the news Thursday.
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