Frontier Airlines and the union representing its nearly 1,000 flight attendants have reached a tentative agreement to trim labor costs, partly through a suspension of a 401(k) match program through 2015.
Frontier said Tuesday that the tentative deal with the Association of Flight Attendants-CWA should save it $16 million in labor costs over a four year-period. It includes adjustments to vacation and sick accruals and other pay-related changes. In exchange, flight attendants would receive equity in Frontier and could participate in the company's profit-sharing program.
Flight attendants still have to ratify the deal.
The union says the agreement will provide job security and financial stability for flight attendants while helping the airline stay viable.
Frontier Airlines is a subsidiary of Indianapolis-based Republic Airways Holdings Inc. and has a hub in Denver.