Frontier Airlines said its pilots union agreed to extend interim pay cuts through Dec. 1.
The concessions were to expire Sept. 30, according to papers filed with the U.S. Bankruptcy Court in New York where Frontier sought Chapter 11 protection in April. The pilots, represented by the Frontier Airline Pilots Association, voted to extend the concession agreement on Oct. 10 and Frontier filed papers seeking court approval of the extension on Oct. 11.
“The Pilot extension agreement provides benefits to the Debtors that they have determined are essential to their ongoing viability,” Frontier’s attorneys said in the filing.
The airline and the union continue to negotiate changes to the collective bargaining agreement, though they haven’t yet reached final agreement, the company said in court papers. The union will have a $7.1 million unsecured claim in the bankruptcy as a result of the concessions. A hearing on the motion is scheduled for Oct. 30 before U.S. Bankruptcy Judge Robert Drain.
Frontier last month sought approval to void contracts with the International Brotherhood of Teamsters union and impose its own terms, including sending heavy maintenance work to another company and cutting 130 jobs, which Frontier says would save more than $5.6 million a year.
Frontier wants to cut costs by negotiating new contracts with workers as part of its reorganization.
Last week, Frontier President and CEO Sean Menke said Monday the Lynx service to Aspen has done better than he expected. Lynx flew five daily flights during the summer and is now offering four daily flights during what’s called the “shoulder season” before skiing starts.
With Bloomberg News and The Associated Press
