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Jun 21, 2001|
Frontier Airlines Pilots Vote Overwhelmingly to Amend Contract
DENVER (June 21, 2001) - The pilots of Frontier Airlines (Nasdaq: FRNT), represented by the Frontier Airline Pilots Association (FAPA), today voted to ratify an amendment to their first agreement with 98.2 percent of the ballots cast voting for ratification. Of the 331 Frontier pilots that FAPA represents, 208 were eligible to vote. Of 208 eligible voters, 170 participated in the ratification process, with 167 voting for ratification and 3 voting against ratification. The five-year contract was signed in May 2000, and amended in May 2001. The amendment calls for a 14.5 percent to 35.8 percent increase in pilot salaries; an increase in overtime pay rates and an increase in per diem pay rates. The pay and per diem increases will be retroactive to May 1, 2001. The Company anticipates that this amendment will add approximately $3.8 million in additional expenses on an annual basis. Further terms of the agreement were not available.
"Today's announcement demonstrates our continued commitment to further build an open, long-term partnership with all employees," said Frontier Chief Operating Officer Jeff Potter. "Specifically, our compensation philosophy, which establishes a benchmark among an industry peer group, extends to all Frontier employees, and we felt it only appropriate to set pilot pay rates using the same point of reference used for other employee pay rates."
"We have been extremely pleased with both the process and the end result of these discussions," said Captain Ron Stock, president of the Frontier Airline Pilots Association. "That the company was willing to sit down and discuss our compensation issues only one year into a five-year agreement was remarkable, and we believe these very open, fair and constructive discussions helped us reach a mutually beneficial amendment that will provide long-term, strategic growth for Frontier."
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