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Sep 18, 2001
Frontier Airlines Reduces Schedule by 20 Percent
DENVER (Sept. 18, 2001) - Frontier Airlines (Nasdaq: FRNT ) today announced it would cut its flight schedule, effective Oct. 1. 2001, by approximately 20 percent. The airline will also cut salaries for company officers by 20 to 40 percent, implement other management salary reductions and eliminate approximately 440 positions. The moves are in direct response to the anticipated drop in demand for air travel following the tragedies last Tuesday in New York and Washington.
Frontier Chief Executive Officer Sam Addoms stated: "These are painful steps during a very difficult time for our country and our industry. The employees of Frontier Airlines have worked tirelessly during the past seven years to create a profitable company with a long-term future in a strong family-oriented environment. Losing just one employee is not acceptable to us. However, while the events of last week have left us with broken hearts, our spirits are not broken. We are hopeful that our government leaders will participate in Frontier's survivability, and we have every intention of working with our remaining team to rebuild travelers' confidence in our airline and in air travel."
The airline's schedule reduction will entail the elimination of one flight each from nine of its 22 markets served from Denver as well as discontinuing service to Washington National Airport. The schedule change reduces the airline's daily average system flights from approximately 127 to approximately 103, or an estimated 18.9 percent. The workforce reduction will be accomplished through a combination of attrition, leave of absences, early retirements and select reductions-in-force.
Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport, serving 23 cities coast to coast with a fleet of 27 aircraft. In June 2001, BusinessWeek ranked Frontier 14th on its list of Hot Growth Companies and in September 2001, Fortune magazine ranked Frontier 41st on its 100 Fastest Growing Companies list. Frontier provides capacity and other data and industry comparisons on its Web site, which may be viewed at www.frontierairlines.com.