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Employee Retention of Frontier Airlines -
April 9th, 2011
Frontier Airlines, Inc. is an American airline headquartered in Indianapolis, Indiana, United States. The carrier, which is a subsidiary and operating brand of Republic Airways Holdings, operates flights to 83 destinations throughout the United States, Mexico, and Costa Rica and maintains hubs at Denver International Airport, Milwaukee's General Mitchell International Airport, Kansas City International Airport, and Omaha's Eppley Airfield. It provides regional service to the surrounding Rocky Mountain States through a code-share agreement with Great Lakes Airlines. Frontier is not a member of an air carrier alliance.
Denver (June 12, 2000) - Frontier Airlines (Nasdaq: FRNT ) has named Kevin Stocker as director of human resources effective immediately. Stocker's primary responsibilities will include developing and implementing programs in the areas of recruitment, staffing, affirmative action, Equal Employment Opportunities (EEO), disability management, retention initiatives, employee/labor relations and other client services. In his expanded role, Stocker, 47, will continue reporting to Vice President of Human Resources Ann Block.
"As Frontier's employee base continues to grow in both size and scope, the responsibility of supporting our most important asset, our people, increases," said Block. "Kevin brings a broad understanding of human resources to his expanded role, and we look forward to his continued leadership in the area of human resources."
Stocker brings over 16 years of human resources experience to his new position and most recently served as manager of staffing and employee relations for the airline. Prior to that time, Stocker worked with Public Service Company of Colorado and BlueCross/BlueShield of Colorado, where he was responsible for all human resource functions. He holds a bachelor's degree in business administration from Colorado State University and a master's degree in human resources from the University of Phoenix, Colorado Division. Stocker's background includes extensive work in employee development (managerial assessment, leadership development, training), staffing and disability management. Stocker currently lives in Arvada, CO, with his wife, Linda, and their two children.
Denver-based Frontier Airlines serves 21 cities coast to coast with a fleet of 23 Boeing 737 jets and employs approximately 2,100 aviation professionals. Unlike other airlines, Frontier's low fares do not have a Saturday night stay requirement. In addition, Frontier offers frequent flyer miles in Continental Airlines' OnePass program. In 1999, Frontier was named "Best Low-Fare Carrier" by Entrepreneur Magazine in the publication's sixth annual Business Travel Awards. Also in 1999, the airline received the Federal Aviation Administration's (FAA) prestigious Aviation Maintenance Technician Employers Diamond Certificate of Excellence Award, which provides special recognition to airlines that have 100 percent of eligible employees complete an advanced training aircraft maintenance training program
Even before September 11, 2001, the airline industry faced many problems, including overcapacity, lower profits due to fierce competition, airport congestion, and antitrust concerns. The terrorist attacks of September 11 had the worst economic impact on the airline industry. Although some of the initial panic and fear of flying directly following September 11 has dissipated, more rigorous security screening and passengers’ perceptions of the risk of flying have altered the demand for and experience of air travel, especially in the United States.
The events of September 11 resulted in a transitory, negative demand of more than 30% in addition to an ongoing negative demand of approximately 7%. Since September 11, revenues have plummeted, and approximately 100,000 employees have been laid off. National, Midway and Vanguard Airlines are out of business. United, US Airways, ATA, and now Northwest and Delta are flying in bankruptcy. However, low fare carriers Southwest, Jet Blue, Frontier, and Airtran have been profitable in recent quarters, with Southwest being the best low-cost airline.1
Southwest has not laid anybody off and has not cut any flights since September 11. It has managed its business in good times and survived in bad times. Prior to September 11, Southwest amassed a $2 billion cash cushion. Why did it attain growth and maintain survival and even prosperity? The following are the reasons:
Great marketing strategy and long-term overall strategy
Competition requires companies to make choices as to what to do and what not to do to attain growth and maintain survival. Southwest has a strategy — the creation of a tailored set of best-fit activities. Southwest began as a low-cost, no frills airline 30 years ago.
Southwest treats its employees right. The airline adopted the first profit-sharing plan in the U.S. airline industry in 1973. Through this plan, its employees own at least 10 percent of the company stock. It has a highly motivated workforce. The employee retention rate is 92.3%. It lost a huge amount of business after September 11, but each of its 32,000 employees gave back some of their pay to help tide over the temporary difficulty of the company. Its corporate culture really stands out.3
Southwest fully utilizes its resources and capabilities to make up its core competencies. It focuses on short-haul, point-to-point routes, no-frills service and less-crowded airports. It minimizes turnaround times and keeps its planes in the air longer than its competitors. The design of these best-fit activities, the superior management skills and the employees’ commitment are its core competencies. They demonstrate three characteristics which are (1) it is valuable to the customers; (2) it is applicable in a variety of markets; and (3) it is difficult for competitors to imitate. That is why they result in a sustainable, competitive advantage.
Frontier Airlines is a company run with passion. From CEO Bryan Bedford down to ramp handlers on the tarmac, the Denver-based company operates with a fervent enthusiasm and passion for servicing customers.
That’s exactly how Roger Welch manages the cargo division of Frontier Airlines. As head of the cargo operations, he is insistent upon taking care of people, from his teammates, employees, and of course, his customers.
“Frontier Airlines is the people. If you have even a small part in getting cargo to move or running the airline, your role is as big as the CEO’s. Our people are phenomenal. Every day is a good day because we care about what we move,” he says. Whether the team is moving human remains or transferring live animals, each piece of cargo is treated with the utmost care.
Be a part of our winning team. We offer outstanding perks including free flight benefits, medical, dental, vacation/sick leave, paid holidays, and 401K plan .
If you're looking for a career, not just a job, and believe you can provide legendary service, explore your new "frontier" with us.