August 7, 2009 (FinancialWire) — Frontier Airlines (OTCBB: FRNTQ) (Current Market Cap: $10.71 Mil.) said it has entered into a long-term labor agreement with the International Brotherhood of Teamsters, Local 961.

The agreement modifies the wage and benefit reductions Frontier obtained from its IBT-represented employees under a bankruptcy court order last November. The new agreement’s modified wage and benefit reductions are comparable to the consensual reductions Frontier has obtained from its other employee groups, according to the airline.

Frontier said that the settlement, if ratified, would also resolve ongoing appeals of last year’s bankruptcy court order.

The proposed agreement, which is endorsed and supported by IBT leadership, will now be put before Frontier’s maintenance employees for a ratification vote. The IBT said it anticipates it will hold the ratification vote on the agreement and count ballots by August 20.

Frontier said that the agreement also settles the company’s litigation under Section 1113 of the Bankruptcy Code.

Denver-based Frontier Holdings is the parent company of Frontier Airlines, which employs around 5,000 people.

Frontier Airlines’ mainline operation has 51 aircraft which, in conjunction with a fleet of ten Bombardier Q400 aircraft operated by the company’s Lynx Aviation subsidiary, allows Frontier to offers routes to more than 50 destinations in the U.S., Mexico and Costa Rica.

In addition, Frontier and AirTran Airways operate an integrated marketing partnership covering more than 80 destinations across four countries.

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