http://www.denverpost.com/business/ci_3047577
Article Launched: 09/21/2005 01:00:00 AM
Frontier grows as competitors falter, cut back
The regional carrier says it plans to have nearly 2,000 more full-time employees by 2008.
By Kelly Yamanouchi
Denver Post Staff Writer
While several large airlines falter in Chapter 11 bankruptcy, Frontier Airlines has steadily grown over the past several years and is poised to raise more cash for the future.
Denver-based Frontier has grown from 2,332 full-time equivalent employees in July 2001 to 4,117 this past July, according to figures released Tuesday by the U.S. Bureau of Transportation Statistics. The airline said it expects to have 6,000 employees by 2008.
At the same time, other carriers - such as Northwest and Delta, which filed for Chapter 11 bankruptcy protection last week - have been gradually shrinking payrolls.
United Airlines, the largest carrier at Denver International Airport, has cut its employment base from 96,603 full- time equivalent employees in July 2001 to 54,489 in July. It also is working toward exiting a nearly three-year Chapter 11 bankruptcy.
On Monday, Frontier filed a "shelf registration" with the Securities and Exchange Commission that lays the groundwork for raising up to $250 million.
The measure allows Frontier to sell debt securities, stock and securities warrants to repay debt, buy planes or other capital equipment, prepay aircraft leases or add to working capital.
The regional carrier, which started in 1994 and is much smaller than United, Delta and Northwest, has 49 Airbus planes in its fleet.
While it has grown rapidly in past years, Frontier has said it plans more conservative growth in the near future. For example, it plans to increase its fleet to 50 planes for the fiscal year ending in March, 57 planes the next fiscal year and 62 planes the year after that.
However, Frontier also has purchase rights for another 23 Airbus planes, which present options for greater growth.
Staff writer Kelly Yamanouchi can be reached at
[email protected] or 303-820-1488.