Severance packages sought for Frontier execs

Frontier Airlines asked the U.S Bankruptcy Court Friday to approve severance packages capped at $144,180 for 65 executives if the airline eventually folds or they otherwise lose their jobs, according to court filings.

"It's essentially intended to prevent attrition in a time when we need our management focused on bringing us out of Chapter 11," said Steve Snyder, Frontier spokesman.

Frontier says that "even the most senior executive, if severed, will likely receive substantially less than $144,180," which equals five to 10 months severance pay for executive employees.

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Severance packages are frequently sought in Chapter 11 proceedings to keep people in key positions needed to carry out reorganization plans. In the airline's motion, Frontier said it had lost its chief financial officer, general counsel and senior director of corporate communications in the past 90 days.

Frontier's non-union employees below the executive ranks -- who makes up the majority of the airline's workforce -- have had severance packages in place for several years, Snyder said.

The request comes a few days after the Denver-based carrier announced that it would cut employee paychecks by 10 percent. A week earlier, Frontier president and CEO, Sean Menke, took a 20 percent pay reduction to help cut airline costs as it navigates through Chapter 11 bankruptcy.

The filing further said, "Frontier, whose management is leading by example, has pledged to its employees... that these painful reductions in their salaries -- some of which were already below 'market' -- will be reversed if fuel prices and related costs return to more historical levels."

Fuel prices have jumped nearly 20 percent since Frontier filed for Chapter 11 bankruptcy protection last month.