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Deals & People August 3, 2011
Flight Attendants Agree to Exchange Match for Equity Stake
The Association of Flight Attendants-CWA, representing 1,000
employees of Republic Airways Holdings and its Frontier Airlines,
approved a new collective bargaining agreement that gives them an
ownership stake in the company.
Reported by PLANADVISER staff
In exchange, the attendants agreed to adjustments in their vacation, other pay-related changes and suspension of the 401(k) match through 2015, the Indianapolis Star reported.
The deal is expected to save Frontier $16 million in labor costs over four years. Some terms are similar to an agreement announced earlier this summer with the union representing Frontier pilots, who will also get an equity share.
Erika Schweitzer, president of the union’s executive council, said: “We are just as pleased to be able to contribute to Frontier’s return to profitability and what that will mean to all the (5,500) employees,” according to the newspaper.
Since buying Frontier from bankruptcy two years ago, Republic has battled to keep it profitable against intense competition at its hubs in Denver and Milwaukee, and relentlessly rising fuel prices.