Frontier Airlines 2004 Annual Report Download - page 21

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Please find page 21 of the 2004 Frontier Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Any labor disruption or labor strikes would adversely affect our ability to conduct our business.
All of our pilots, flight attendants, dispatchers and customer service employees are represented by unions. Collectively, these employees represent approximately 78% of our workforce
as of December 31, 2004. Although we have never had a work interruption or stoppage and believe our relations with our unionized employees are generally good, we are subject to risks of
work interruption or stoppage and/or may incur additional administrative expenses associated with union representation of our employees. Our collective bargaining agreement with our flight
attendant union is currently under federal mediation. We cannot accurately predict the outcome of any amendment negotiations. If we are unable to reach agreement with any of our unionized
work groups on the amended terms of their collective bargaining agreements, we may be subject to work interruptions and/or stoppages. Any sustained work stoppages could adversely affect
our ability to fulfill our obligations under our code
-
share agreements and could have a material adverse effect on our financial condition, results of operations and the price of our common stock.
Under the terms of our jet code
-
share agreement with US Airways, if we are unable to provide scheduled flights as a result of a strike by our employees, they are only required to pay us
for certain fixed costs for specified periods. Under the terms of the code
-
share agreements with American, Delta and United, none of them are required to pay us any amounts during the period
our employees are on strike and we are unable to provide scheduled flights. A sustained strike by our employees would require us to bear costs otherwise paid by our code
-
share partners.
In addition, a labor disruption other than a union
-
authorized strike may cause us to be in material breach of our code
-
share agreements, all of which require us to meet specified flight
completion levels during specified periods. Our code
-
share partners have the right to terminate their code
-
share agreements if we fail to meet these completion levels.
Furthermore, since each of our code
-
share partners is a significant source of revenue, any labor disruption or labor strike by the employees of any one of our code
-
share partners which
would affect their ability to pay us under our code
-
share agreement could have a material adverse effect on our financial condition, results of operations and the price of our common stock.
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