Airline Says That Will Boost Productivity

Pilots at Denver-based Frontier Airlines have agreed to change the way they're paid, deciding to calculate their checks on an hourly basis, rather than receiving a flat salary without regard to the number of hours flown each month. The overwhelming decision by pilots could save the low-cost carrier millions of dollars a year.

The concept gives pilots incentive to work more hours, boosting productivity. In fact, Frontier says the deal will increase work output by ten percent.

Under the agreement, ten-year veterans of the airline would make $151/hour, according to AirlinePilotPay.com. A first-year pilot will make approximately $115/hour.

Union officials tell the Denver Rocky Mountain News they're "real happy" with the agreement.

The airline says the new contract is a model for the industry, an example of how companies and employees can have good relations, even in bad times.

"It's a feather in our cap. It's quite rare," Frontier CFO Paul Tate told the Denver paper.

FMI: www.frontierairlines.com