Danielonfriendly skies

Frontier Airlines to Outsource Employees @ All Stations (Except DEN)

For Frontier Airlines employees, and to a lesser part their customers, today is a day they will never forget.

Though it has not yet been announced to the public, Frontier employees were notified today of a drastic reduction in the workforce, and the introduction of mass-outsourcing for all stations. Below are the changes that are coming to what used to be a great carrier, and one of my favorite airlines.

  • All stations, with the exception of Denver, will see their above and below wing employees outsourced.
  • General Manager's at all stations, with the exception of Denver, are being fired.
  • Frontier and Republic are working with the outsourcing company to take on current Frontier employees.
  • Denver is still under review for the possibility of being outsourced.
  • Republic Finance was behind this decision

At the current time, 60% of Frontier's stations utilize outsourced staff, either for 100% of their operations, or just for the ramp. And while this may make sense to those that run the numbers side of the business, this will likely be a huge blow to employee morale. Many employees are no doubt asking themselves "what next"?

Update: Though no official statement had been posted at the time of this post, the story has hit news sites across the country. Frontier Airlines has told the Denver Post that "We need to take every reasonable measure to ensure the future stability and viability of our company and to keep our costs low for our customers."

Frontier has also been addressing the matter via their Facebook wall, though only if customers posted about it. Most of the reponses have been similar to this: "Our change will allow us to continue to provide service to smaller markets where we don't have a large presence. The decision was difficult, but necessary."

Stay tuned for an official statement from Frontier, as well as any remarks from their CEO, David Siegel.

Comments

#1
Caleb H. February 5, 2013 at 10:18 pm

From a business perspective, what are you thoughts on this decision? Obviously, the human injury in an instance like this is incalculable; however, do you feel this was necessary for the company to survive? From an outside perspective, it appears Republic today greatly lessened the value of Frontier and their chances of finding a buyer. The loss of institutional knowledge and experience, coupled with Frontier's inability to complete necessary business tasks internally, signals to me that Republic is only delaying the inevitable.

Also, nice shout-out in the UDK today! Dan the Taxi Man!

#2
PK February 6, 2013 at 12:54 pm

Our lousy economy is partly due to "cost cutting" measures such as this. In the short term, the stock goes up as predator investors think they're cashing in on human misery and it's a bonus too for the upper management that arranged the deal (they often get a bonus and stock options.)

Then after the stock is dumped and the manager has moved onto another position (or company, often the outsourcing company itself), it's discovered that the quality of service is low and costs are greater than expected. Looks like they'll have to increase prices. Customer service also suffers.

So the next group of management determines that due to economic problems, they'll need to outsource...

And they give out Harvard diplomas for that kind of thinking...

#3
Samuel Roecker April 4, 2013 at 10:06 am

Wow, what a shame! I've been watching the bloodbath between United, Southwest, and Frontier at Denver for several years. It looks like Frontier is desperate and in a constant struggle to survive against rival airlines. I would much rather fly an airline like Southwest, which has never outsourced or laid-off any of its employees. Frontier can longer pretend to be "Denver's airline" with this move.

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