Frontier, United to cut 600 jobs

Carriers blame high fuel costs for local reductions

By Chris Walsh, Rocky Mountain News (Contact)

Published July 7, 2008 at 10:05 p.m.
Updated July 8, 2008 at noon

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Denver's two largest airlines will slash more than 600 positions in Colorado as they look to pare millions of dollars in expenses amid soaring fuel costs.

Frontier Airlines, which is operating under Chapter 11 bankruptcy protection, will eliminate 456 local positions in September and October, mostly flight attendants and pilots. The job cuts - outlined in a letter to the Colorado Department of Labor and Employment - represent about 10 percent of its 4,788 workers here.

Colorado Department of Labor and Employment spokesman Bill Thoennes said today that Frontier told the state the layoffs include 152 first officers, 169 flight attendants, 50 customer service agents and 35 mechanics.

The list also includes various other positions such as dispatcher, inspector and aircraft cabin cleaners.

United Airlines plans to ax 150 jobs here this month, or about 3 percent of its 5,400 local positions, according to letters it sent to state officials. The cuts include 50 customer service employees and 100 ramp workers.

The moves are part of previously announced plans by both airlines to ground planes and reduce service. Neither United nor Frontier had released specific information about the number of local job losses.

The carriers have said they must trim costs to reverse steep losses fueled by rising oil prices.

"Unfortunately, among other things, the unprecedented rise in the price of fuel has forced Frontier to take these steps in an attempt to remain competitive in this challenging environment," Frontier said in the letter to state officials.

Most of Frontier's cuts will take place Sept. 1, although some affected pilots will be laid off on Oct. 1. The company declined to comment specifically on the move, other than to confirm the number of job cuts.

"We make it a policy to not discuss in detail personnel matters," Frontier spokeswoman Lindsey Purves said.

Frontier, which is based in Denver, is looking to secure the financing it needs to emerge from bankruptcy. On Monday, the company asked a bankruptcy court to extend its deadline for filing a reorganization plan from Aug. 8 to Feb. 4. Frontier also asked for another 90 days to accept or reject its property leases.

Fast-growing Southwest Airlines likely will help absorb some of the job reductions. The Dallas-based carrier is expanding in Denver this year, recently announcing plans to add 20 daily departures to its roster of flights in Denver. As part of that growth, the company will hire another 100 workers.

Still, the job cuts at United and Frontier will ripple throughout the Denver area, and many affected workers might have to leave the industry.

"Obviously, it's a painful displacement for those people affected by this, and it's certainly reflective of the impact of $140 a barrel oil," said Jeff Thredgold, an economist with Vectra Bank Colorado. "We're seeing job cuts at almost all the major airlines, which are on target to lose billions of dollars this year. If misery loves company, Denver is not alone."

walshc@RockyMountainNews.com or 303-954-2744

• July 8, 2008

  3:49 a.m.

  Suggest removal

  LOUIE writes:

  Regardless of which party takes office, it's going to get worse. With Mr. Obama's promises of change, it sounds great, but bankers will not finance anything while losing thier tail. With McCain it gets no better; taxcuts will help if they target the middle class, but thier losing thier jobs just the same. We need to restore America's toolbox that has left and set up shop in other counrties. NAFTA needs to be readdressed; there is no incentive for our industrialists to stay in America. Taxes, strict EPA regulations, cheap foriegn labor has made it more profitable to move manufacturing outside America. The EPA has made it extremely difficult to do business here, especially when other nations such as China, Latin America could care less and offer the industrialist opportunity to function without thier strict regulations. Good paying jobs are lost as factories close up here, and open up elsewhere where they accomendate them to operate much cheaper. The enviromentalist fails everytime a dirty new factory is built outside his juristiction. Bet these other nations are happy with the strict EPA regulations as American money is coming to thier country at the expense of our middle class!

• July 8, 2008

  7:53 a.m.

  Suggest removal

  fastnloose writes:

  I agree with your comments Louie.As much as I would like to be more excited about McCain,he is still the best choice for the times we are in.

• July 8, 2008

  8:04 a.m.

  Suggest removal

  davies writes:

  LOUIE writes: "...cheap foriegn labor has made it more profitable to move manufacturing outside America."

  Abrogating NAFTA or any other attempt to restrict free trade is not going to change that fact in the long run. The USA is undergoing an adjustment right now where the dollar is falling in value. Foreign goods are more expensive for us, but USA-made goods are cheaper overseas, so give it time, and some of the current trade disparities will equalize somewhat.

  And notice that this particular story is about fuel costs, not manufacturing per se. Drilling for more domestic oil in ANWR and along the coast would help our situation a great deal, down the road a few years. For heaven's sake, let's get started.

• July 8, 2008

  8:29 a.m.

  Suggest removal

  danirobi writes:

  If we don't open our eyes and realize that we need to start drilling in our own country, we'll soon be resorting to horse and buggie to get around...oh wait thats what the Democrats and environmentalist want us to do anyway, my bad...

• July 8, 2008

  8:32 a.m.

  Suggest removal

  Coco writes:

  Does anyone really want to breath the type of air residents of China, India, Hong Kong etc put up with? It is not a coincidence that we in America don't have chronic asthma, gastrointestinal distress, etc. (Remember the good old days of leaded paint chips & brain damage?) Without environmental law, we'd be in the same boat. I suspect Louie would be the first to cry foul if any industrial plant set up shop in his neighborhood without the proper pollution prevention in place. That first puff of acrid smoke into the air or discharge of heavy metal tainted water into the Platte would likely send any of us into a tizzy. It won't be long before residents of China and other countries demand stricter controls as well.

• July 8, 2008

  9:20 a.m.

  Suggest removal

  P_Denver writes:

  Don't worry - this is all temporary.

  President Obama will nationalize the oil companies and the airlines. He and his administration will then control the prices, and all the economics will balance themselves out.

  Rich people will pay more for their tickets (because they can) and the poor will fly for free.

  The workers will all belong to the Federal Government Union, and will be good Democrats. It will all be just fine very soon. Have patience. You'll see.

• July 8, 2008

  7:43 p.m.

  Suggest removal

  max12 writes:

  I can't wait for Pres Obama to get going. I'm quitting my job and stopping making payments on everything. The Dems are going to take care of me from now on out. Oh, are our north american union buddies in canada and mexico going to help us fight the terrorists when they invade eastern colorado?? I sure hope so...oh wait a minute Pres Obama will kill them with kindness..I forgot

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