National757 From United States, joined Jul 2007, 565 posts, RR: 0 Posted (2 months 4 days 11 hours ago) and read 6409 times:
All kinds of Frontier related articles in the Denver media today. Apparently all employees including senior officers will have their pay reduced "temporarily" in order to look more attractive to potential investors. How do temporary wage reductions attract investors for DIP financing? In my view, wage reductions only serve to reduce costs and make your work force more militant.
Quote: We recently announced pay cut reductions for the entire Frontier Airlines Holdings, Inc. officer group effective May 1. In addition, We are now asking that all employees also take a pay reduction through September 2008. At that time, we will review our financial situation and the market conditions again. We will also be suspending the 401(k) match for this period of time.
Quote: Q. How much of a wage reduction will I have to take?
A. As you know Sean recently announced that he was taking a 20% pay cut and that all of the officer team would also be taking a cut effective May 1.
Graded employees making a salary less than $24,960 ($12/hour X 2080 hours) or employees in pay structures will receive wage reductions effective June 1st based on the chart below.
Pay Rate Range Percentage Reduction
$12 per hour and greater 10%
$11.50 - $11.99 8%
$11.00 - $11.49 6%
$10.50 - $10.99 4%
$10.00 - $10.49 2%
Less than $9.99 1%
Flight Crew employees will receive pay reductions based on their 70 hour guarantee. The rate will be applied to all hours paid. The following scale will be effective June 1st:
Pay Rate Range - Salary Percentage Reduction
$1950 per month and greater 10%
$1550 - $1950 6%
$1150 - $1550 2%
Less than $1150 1%
Q. How long will these reductions be in effect?
A. The plan is for these reductions to be in place until the end of September at which time the company will review its financial situation and the market conditions to determine next steps.
How much confidence do Frontier's senior leaders have in the struggling airline? Not much, according to the Teamsters Union.
Quote: Nonetheless, Frontier employees agreed to $10.2 million in labor savings. During negotiations, Teamster employees agreed to a performance bonus plan for both management and line employees.
"Suddenly, on Tuesday, management sprang on us a new severance plan that would give them pay up to six months," Fazakas said. "We would get nothing.
"We're outraged by this secret plan for a golden parachute," Fazakas said. "They concealed this plan from us throughout bargaining. They want us to have confidence in their plan to emerge from bankruptcy, but obviously they have no confidence in it themselves."
[Edited 2008-05-15 09:31:31]
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LAXintl From United States, joined May 2000, 7999 posts, RR: 11 Reply 2, posted (2 months 4 days 10 hours ago) and read 6205 times:
From what I understand Frontier execs in the last couple of weeks have been to New York knocking on doors searching for DIP financing and have repeatedly come up empty handed. I suspect F9's loss rate is high at the moment, with the proposed wage reductions going someway to stem this.
In order to really have someone cough up DIP money, you really need a plan that will at least allow the corporation to tread water, while it develops a longer term viable business plan that provides some assurance of security to the DIP lender.
From the desert to the sea, to all of Southern California
F9Animal From United States, joined Dec 2004, 2445 posts, RR: 20 Reply 4, posted (2 months 4 days 10 hours ago) and read 6057 times:
Quoting TVNWZ (Reply 3): This is not good. They are obviously trying to preserve cash and if they re getting no takeers for DIPF, the end may be nearer than we think.
Actually, I have long wondered why pay cuts have not happened already. Airlines are infamous for doing this before bankruptcy. F9 has always been in the upper for pay, and I am sure it is just temp. I do feel for the fellow employees, but I am also sure they understand. Frontier has always rewarded employees when the profits are there, and never took away when losses occured. That speaks volumes about the integrity of the company, and its values. This is also clearly a sign that Menke is determined to steer Frontier through these tough times, and bring Frontier out of bankruptcy as a healthy, stronger airline.
Servisair From United States, joined Jul 2006, 32 posts, RR: 0 Reply 5, posted (2 months 4 days 10 hours ago) and read 6043 times:
This is the beginning of the end for Frontier. I have first hand experience in this as the 10 Airlines I have worked for since 1980 have been through bankruptcy and only 2 are left. (Frontier & United) and something tells me I will be 10 and 0 in the next couple of years!
I loved working for Frontier as they have a great culture and a strong upper Management team. I just don't think they have a chance because of the following:
1. Bankruptcy is horrible for public relations
2. Pay cuts = people will start leaving in droves.
3. Fuel, fuel, fuel, fuel, fuel, fuel and more fuel!!!
4. Although humble and discreet at times southwest is circling for the kill. They have time on there side.
5. UA is doing there part as well.
6. No expansion to speak of. DEN is there only home.
I really do hope they make it but I said the same thing for the other 8 Airlines I worked for and they are long gone!
NZblue From United States, joined Jun 2004, 557 posts, RR: 10 Reply 6, posted (2 months 4 days 9 hours ago) and read 5911 times:
Quoting National757 (Thread starter): How much confidence do Frontier's senior leaders have in the struggling airline? Not much, according to the Teamsters Union.
Since when has any union expressed confidence or have any other positive things to say in any airline's management/business plan in a downturn/reorginazation, regardless of airline size or circumstance?
Being a Frontier flight attendant, I can say that, for the most part, those I know in my work group have been very supportive of the decisions management has made in order to keep the company viable for everyone. I, for one, am in support of these decisions which need to be made to attract the financing we need to not just get through bankruptcy, but to continue to fly in the future as well. The fact that management has agreed to take a higher pay cut than the rest of the employees (despite the fact that they obviously are paid more) speaks to the seriousness of matter, and their efforts do at the very least show that we are all in this together.
The bottom line is this...I have a job today; I have a job tomorrow. I have a job I absolutely love and work with the finest people I could ever ask to work with. A 10% cut is not a whole lot to be asked of when you factor in that our anniversary raises will continue as scheduled, making our pay cut more of a pay freeze than anything else. There are far deeper sacrifices that could have been asked of us. And if it indeed comes to making those deeper cuts, life is adjusted with those changes, and life goes on.
I've always lived by the rule of living below your means for situations exactly like this one. I have a comfortable lifestyle, my own personal finances are in check, and I am prepared to adjust as need be. Most importantly, I'm just as happy and proud to be working at Frontier today as I was yesterday, as I was when Chapter 11 was filed, and as I was on day one of my employment. This announcement will not affect my job morale or performance, and I will not let anyone else's attitude affect my own, be it at work or even reading the opinion of the doom-sayers on this and other message boards. I understand how tight a rope management is walking to ask for pay reductions while at the same time trying to keep morale and relations above water, especially at a workforce as generally positive and happy as at Frontier. Despite what the unions are whining about, I believe that, thus far, given our situation, management is walking that fine line well.
It's an entirely different kind of flying; all together.
AirplaneBoy From United States, joined May 2004, 500 posts, RR: 15 Reply 7, posted (2 months 4 days 8 hours ago) and read 5709 times:
EWRCabinCrew- THANK YOU for the kind words. It's great to see support from other airline employees.
NZBlue and F9Animal - Well said! I feel exactly as you both do and am not concerned about this recent decision. All industries are now being affected by the downturn in the economy and I'm happy that we are not laying off employees. This is a decision with long term effects. Granted, there will be those who will complain and be bitter, but I sincerely believe that they are in the minority at Frontier. We have GREAT employees who are very dedicated to the long-term success of the airline. I also think that our CEO's decision to reduce his pay - as well as the pay of the executive management team by 20% prior to deciding to reduce the pay of the masses speaks volumes. There aren't very many airlines that have experienced Ch. 11 who can claim that; rather, the trend has generally seen employees forced to take pay cuts while senior management rewarded themselves with raises and/or bonuses. We have great leadership at F9 and I have faith in knowing that every decision they make is not made in haste. Every decision is solely geared toward a successful emergence from bankruptcy as a healthy, sustainable, and profitable airline. In addition, it's important to understand that for every dollar that the price for a barrel of oil increases, it adds several million dollars to the company's bottom line. I am here for the long haul and am thankful, like NZBlue and many other F9 employees, to still have a job that I enjoy.
Cubsrule From United States, joined May 2004, 7218 posts, RR: 4 Reply 8, posted (2 months 4 days 8 hours ago) and read 5670 times:
Quoting Servisair (Reply 5):
1. Bankruptcy is horrible for public relations
Is that why people quit flying NW, US, DL, and UA during b/k?
Quoting Servisair (Reply 5): 2. Pay cuts = people will start leaving in droves.
Quoting NZblue (Reply 6): Being a Frontier flight attendant, I can say that, for the most part, those I know in my work group have been very supportive of the decisions management has made in order to keep the company viable for everyone. I, for one, am in support of these decisions which need to be made to attract the financing we need to not just get through bankruptcy, but to continue to fly in the future as well. The fact that management has agreed to take a higher pay cut than the rest of the employees (despite the fact that they obviously are paid more) speaks to the seriousness of matter, and their efforts do at the very least show that we are all in this together.
I think I'm going to go with the F9 employee on this one
Quoting Servisair (Reply 5): 4. Although humble and discreet at times southwest is circling for the kill. They have time on there side.
Why is time on WN's side? And how will WN effectively compete to the L4 cities or LGA or DEN?
Alphascan From United States, joined Nov 2003, 847 posts, RR: 8 Reply 9, posted (2 months 4 days 7 hours ago) and read 5628 times:
AirplaneBoy, NZBlue and F9Animal: Your attitudes and the attitudes of most of your colleagues is why I continue to fly Frontier ! Thanks very much for the great service I can't seem to find on any other carrier.
"To he who only has a hammer in his toolbelt, every problem looks like a nail."
Mariner From New Zealand, joined Nov 2001, 9853 posts, RR: 75 Reply 10, posted (2 months 4 days 7 hours ago) and read 5505 times:
Quoting Servisair (Reply 5): 3. Fuel, fuel, fuel, fuel, fuel, fuel and more fuel!!!
That's about the only thing that matters here. Frontier's fuel bill has gone up $85 million in four weeks. If that is what happening at Frontier, I am intrigued as to what is happening at the OAL's.
As for the rest, the Chapter 11 filing appears to have a good effect on Frontier's public relations and "humble or discreet" are not words I would associate with Southwest at DEN
I am also intrigued to know how United is "playing their part" when they have just announced a further 5% reduction at DEN.
Quoting Alphascan (Reply 9): AirplaneBoy, NZBlue and F9Animal: Your attitudes and the attitudes of most of your colleagues is why I continue to fly Frontier !
WA707atMSP From United States, joined Oct 2006, 622 posts, RR: 1 Reply 11, posted (2 months 4 days 7 hours ago) and read 5460 times:
I was fortunate enough to fly on Frontier's MSP-LAX inaugural flight four years ago, and I loved every minute of it. The crew were one of the friendliest crews I've ever flown with - they did everything they could to make the passengers feel welcome.
I genuinely hope Frontier is able to get the financing they need to exit Chapter XI, so I will be able to fly again with the employees that took such good care of me!
TVNWZ From United States, joined Feb 2006, 1199 posts, RR: 0 Reply 12, posted (2 months 4 days 4 hours ago) and read 5186 times:
Quoting WA707atMSP (Reply 11): I genuinely hope Frontier is able to get the financing they need to exit Chapter XI, so I will be able to fly again with the employees that took such good care of me!
I have only flown them twice. But, both timees the personel were very nice and attentive. I don't want to see any airline fail, and I hope Griz can survive. But, time may be running out.
Hiflyer From United States, joined Nov 2004, 1226 posts, RR: 3 Reply 13, posted (2 months 4 days 4 hours ago) and read 5174 times:
So 30 days in and no DIP financing yet so slash the salaries. I wonder if this is more trying to extend cash as far as they can than it is to interest DIP.
Iowaman From United States, joined May 2004, 3195 posts, RR: 4 Reply 14, posted (2 months 4 days 4 hours ago) and read 5141 times:
Quoting NZblue (Reply 6): The bottom line is this...I have a job today; I have a job tomorrow. I have a job I absolutely love and work with the finest people I could ever ask to work with.
REALDEAL From Australia, joined Mar 2008, 538 posts, RR: 0 Reply 16, posted (2 months 4 days 4 hours ago) and read 5058 times:
Quoting National757 (Thread starter): All kinds of Frontier related articles in the Denver media today. Apparently all employees including senior officers will have their pay reduced "temporarily" in order to look more attractive to potential investors.
temporarily could mean for next 5 year plus or howver this recession we had to have lasts, or until Frontier & many other carriers go out of business !!!
hey at least you've got a job for the time being - be thankful for that, many millions of others won't !!!
HALFA From United States, joined Jan 2004, 966 posts, RR: 9 Reply 17, posted (2 months 4 days 4 hours ago) and read 5038 times:
AirplaneBoy and NZblue,
Hang in there! Keep doing what you do and do it well. I've been through two bankruptcies with HA in my career and we have survived both with hard work, perseverance, and a positive attitude and I am very confident that you guys will pull through this. You have a GREAT company to work for!
And if you ever work with a flight attendant named Kelly B. from Hawaii, please give her a hug from me, she is my sister!
Aloha,
HALFA
Hawaii vs. Florida 8-30-08...........Go WARRIORS!!!
727forever From United States, joined Jan 2006, 313 posts, RR: 3 Reply 18, posted (2 months 4 days 3 hours ago) and read 4801 times:
Quoting NZblue (Reply 6): Since when has any union expressed confidence or have any other positive things to say in any airline's management/business plan in a downturn/reorginazation, regardless of airline size or circumstance?
DALPA has been pretty positive of late about the DL/NW merger. I do agree with you most of the time however.
I said it when I was at DH and I'll say it now, it is easier to find a job when you have a job than when you are out on the street in this business. My gut says that the end is unfortunately near for a great little airline in F9 and were I working there I would be seriously looking at my options to prevent or lessen t
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