Thu, Sep 02, 2004
Airline Says That Will Boost Productivity
Pilots at Denver-based Frontier Airlines have agreed to change
the way they're paid, deciding to calculate their checks on an
hourly basis, rather than receiving a flat salary without regard to
the number of hours flown each month. The overwhelming decision by
pilots could save the low-cost carrier millions of dollars a
The concept gives pilots incentive to work more hours, boosting
productivity. In fact, Frontier says the deal will increase work
output by ten percent.
Under the agreement, ten-year veterans of the airline would make
$151/hour, according to AirlinePilotPay.com. A first-year pilot
will make approximately $115/hour.
Union officials tell the Denver Rocky Mountain News they're
"real happy" with the agreement.
The airline says the new contract is a model for the industry,
an example of how companies and employees can have good relations,
even in bad times.
"It's a feather in our cap. It's quite rare," Frontier CFO Paul
Tate told the Denver paper.
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