Frontier Airlines 2010 Annual Report Download - page 12

to annual revisions, generally based on certain Bureau of Labor Statistics' labor and material indices. We believe these agreements, coupled
with our ongoing maintenance program, reduce the likelihood of unexpected levels of engine, APU, avionics and wheels and brakes
maintenance expense during their term. Certain of these agreements contain minimum guarantee amounts, penalty provisions for either the
early removal of aircraft or agreement termination for activity levels below the minimums.
While we do not have long term maintenance agreements for our Airbus (except for our wheels and brakes) and Q400 fleets, we
have made significant deposits with the aircraft lessors for future maintenance events which will reduce our future cash requirements. As of
December 31, 2010, we had maintenance deposits of $147.2 million.
We perform our heavy and routine maintenance projects at our facilities in Columbus, Denver, Indianapolis, Louisville, Milwaukee,
Pittsburgh and St. Louis, and we perform routine maintenance services from select line maintenance stations.
All mechanics and avionics specialists employed by us have appropriate training and experience and hold required licenses issued by
the FAA. We provide periodic in-house and outside training for our maintenance and flight personnel and also take advantage of
manufacturers’ training programs that are offered when acquiring new aircraft.
We have agreements with Flight Safety International to provide for aircraft simulator training for our pilots. We have no current
plans to acquire our own simulator in the near term and believe that Flight Safety or other third party vendors will be able to provide us with
adequate and cost effective flight simulator training to provide training for our pilots.
Employees
As of December 31, 2010, we employed approximately 9,850 full-time equivalent employees. The following is a table of our
principal collective bargaining agreements and their respective amendable dates as of December 31, 2010:
Employee
Group
Number of Full-
Time Equivalent
Employees
Representing Union Amendable
Date
Pilots 1,847 International Brotherhood of Teamsters Airline Division Local 747 Oct-07
603 Frontier Airline Pilots Association ("FAPA") Mar-12
27 United Transportation Union (Lynx) *
Flight Attendants 1,562 International Brotherhood of Teamsters Airline Division Local 210 Sep-09
826 Association of Flight Attendants - CWA ("AFA-CWA") *
Mechanics and tool
room attendants 153 Teamsters Airline Division Oct-11
Groomers and cleaners 116 Teamsters Airline Division Sep-15
Dispatchers 102 Transport Workers Union of America Local 540 Jun-12
18 Transport Workers Union Sep-12
Material Specialists 26 International Brotherhood of Teamsters Oct-11
_______________________
* Currently in negotiations
As of December 31, 2010, we had 4,570 employees who are not currently represented by any union. Because of the high level of
unionization among our employees, we are subject to risks of work interruption or stoppage and/or the incurrence of additional expenses
associated with union representation of our employees. We have never experienced any work stoppages or other job actions and generally
consider our relationship with our employees to be good. The union contract for our pilots and our flight attendants, except Frontier’ s pilots,
is currently amendable. The union contracts for our mechanics and tool room attendants and our material specialists are amendable in 2011.
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