After buying Frontier Airlines out of bankruptcy in 2009, Republic Airways plans to reduce its ownership of the company to minority status. This could make Frontier a stand-alone company as soon as early-2012 and bring many jobs back to the Denver economy.
A $120 million restructuring plan is in the works after Frontier lost $55 million during the first quarter of 2011. The plan will rid Republic Airways of ownership and improve Frontier’s finances. It is important for the company to get on its feet and not rely on help from Republic.
Members of the Frontier Airlines Pilots Association were approached by Republic for help in moving the restructuring plan forward. They chose to accept concessions that included a profit-sharing plan and an estimated 10 percent equity stake in the company.
According to the agreement, Frontier must find a chief operating officer and labor relations director by December. These top jobs and several hundred others that were pulled from Denver during the previous acquisition are all expected to return to the city. The restructuring plan could be complete within a couple of years.
Frontier’s move back to Denver is great news for our local job economy. I cannot wait until we see the effects that these jobs will have on our local communities.
If you would like information about relocating to Denver for work, call me at 888-860-1931. I can give you all of the information you need to make informed moving decisions and help you find the house that is right for you.
Photo courtesy of Denver Post