In August 1983, Frontier Holdings, Inc., the parent company of Frontier Airlines, announced that it was forming a new low-cost carrier, Frontier Horizon, to strengthen its competitive posture at its Denver hub.

The move was in response to heavy competition at Denver from major airlines, particularly United Airlines and Continental Airlines, as well as from other new entrants.

Frontier Holdings’ goal was to integrate the flight schedules of both airlines in order to enhance the cross-feeding of passengers and give each airline a competitive edge in its own market.

Frontier Horizon initially operated seven Boeing 727-100 aircraft which it had purchased from American Airlines in early August 1983. These aircraft were reconfigured for 99 passengers in coach and ten in business class.

Inaugural service was originally scheduled for December 10, 1983, but was delayed until January 9, 1984, due to problems with landing and arrival slots, particularly at New York’s LaGuardia Airport.

The Chicago Post Office created cacheted replacement covers, which were canceled and backstamped with the proper dates. They were, however, dispatched on a later flight.

Frontier Holdings, the parent company of Frontier Horizon, announced on January 11, 1985, that it had sold Frontier Horizon to Skybus, Inc., an investor group.