The pilots of Frontier Airlines, Mitchell Airport's second-busiest carrier (also hubbed in Denver), and parent company Republic Airways Holdings, announced they have agreed upon an ownership restructuring deal that will give the pilots an equity stake in the airline, the online Denver Business Journal reported.
According to the article on Bizjournals.com:
Through their union representatives, the pilots agreed to a two-year extension to their collective bargaining agreement, pay increase delays, reduced sick and vacation days, and reduced contributions to their 401(k) plan, in exchange for equity in Frontier Airlines.
The agreement filed by Republic with the Securities and Exchange Commission on June 10, 2011 did not specify how much of a stake the pilots would receive.
Republic also agreed to attract other equity investments in Frontier that would reduce its ownership to a minority interest by the end of 2014.
Republic's board and the pilot union's members must ratify the agreement for it to take effect, and voting is expected by June 17.
Other agreement highlights include: "aircraft growth at Frontier, a liquidity raise of at least $70 million by the company through one or more debt issuances or other financings, material execution of Frontier's restructuring program by the end of 2011, and ... a profit sharing program for Frontier employees."
This column previously reported related news about Republic's recent troubles with Frontier Airlines that appear likely to affect the market structure and airline ticket prices at Mitchell Airport this year:
Republic Airways Holdings, Frontier's parent company was being sued by furloughed Midwest Airlines pilots represented by the Air Line Pilots Association, as well as being forced to keep Frontier ticket prices low at MKE, due to rising fuel costs and increased competition from the merging Southwest-AirTran operation.