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Frontier To Cut 1 Of Every 6 Flights

Airline Expects To Reduce Workforce By 17 Percent

POSTED: 4:25 pm MDT June 25, 2008
UPDATED: 8:19 am MDT June 26, 2008

Frontier Airlines announced Wednesday that it is cutting 17 percent of its flights in the fall and winter.

It is reducing the frequency of flights and reducing its Airbus fleet by seven aircraft. The reductions will be phased in starting mid-August and completed by the end of September.

The airline said its reduction in capacity will also include a "proportional reduction in workforce" but it does not have specific details to disclose about how many jobs will be lost.

"These are very difficult but necessary moves to make, and we put a lot of thought into them," said Frontier President and Chief Executive Officer Sean Menke. "We are focused on weathering the significant storm that we and the rest of the airline industry are facing with record fuel prices and a slowing economy."

Frontier filed for Chapter 11 bankruptcy protection in April, saying its primary credit card processing company wanted to hold back more money from ticket sales. The carrier also has been struggling with historically high fuel costs and aggressive competition in Denver.

Frontier Airlines has been charging travelers $25 for a second checked bag and raised prices for oversized and overweight bags.

Other airlines also have announced cuts.

Among them, United Airlines, which also has a hub in Denver, is reducing its fleet, eliminating about 950 pilot jobs beginning this summer and cutting 1,600 salaried positions. Continental Airlines Inc. plans to cut 3,000 jobs, ground 67 jets and reduce flights. American Airlines is cutting domestic capacity 11 percent to 12 percent, and American Eagle will cut capacity 10 percent to 11 percent, compared with levels of late 2007.

The parent of Frontier Airlines filed a Chapter 11 petition in U.S. Bankruptcy Court in April to gain protection as it restructures debt. The move came after credit card processor First Data Corp. sought to keep up to 100 percent of proceeds from ticket sales in reserve until passengers completed their flights. The parties have reached a new agreement on handling proceeds, though details haven't been disclosed.

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