Frontier, United Announce Plans To Slash Colorado Ranks

Among the areas to be hit by unemployment in airline downsizing is Colorado. The Rocky Mountain News reports Denver's two largest airlines will cut more than 600 Colorado-based positions between them.

Frontier Airlines is currently operating under Chapter 11 bankruptcy protection, and notified the Colorado Department of Labor and Employment Monday it will furlough 152 first officers, 169 flight attendants, 50 customer service agents and 35 mechanics, a total of almost 10 percent of its workforce in Colorado. The cuts will take place in September and October.

"Unfortunately, among other things, the unprecedented rise in the price of fuel has forced Frontier to take these steps in an attempt to remain competitive in this challenging environment," Frontier said in the letter to state officials.

United Airlines sent similar notification to Colorado officials that it plans to cut 150 jobs in the state, about three percent of its Colorado workforce. Gone will be 50 customer service employees and 100 ramp workers.

Both airlines are trying to cut the number of available seats to increase demand and prices, but it may end up costing them market share. Southwest Airlines says it will expand in Denver as its competitors cut service, bringing 100 new jobs with it.

That might be good news for some displaced workers, and more bad news for United and Frontier. But the announcement is a sad sign of the times, said Vectra Bank Colorado economist Jeff Thredgold.

"Obviously, it's a painful displacement for those people affected by this, and it's certainly reflective of the impact of $140 a barrel oil," said Thredgold. "We're seeing job cuts at almost all the major airlines, which are on target to lose billions of dollars this year. If misery loves company, Denver is not alone."

FMI: www.frontier.com, www.united.com