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Author: btrubble Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 580  
Subject: former insider Steve Warneke's yahoo post. Date: 10/3/2001 2:05 PM
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Recommendations: 2
On the Yahoo message board, this Steve Warneke posted
a message, and sure enough I looked him up, he's an
insider, and he bought 70K shares last week. Here's
his post
http://messages.yahoo.com/bbs?.mm=FN&action=m&board=7082112&tid=frnt&sid=7082112&mid=6959

or the actual text:

Credibility
by: steve_warnecke 10/01/01 09:33 am
Msg: 6959 of 6974

Credibility, like trust, can only be earned not
demanded or created. It often takes time to develop
and even longer to reap any benefit from.

For the first few years, Frontier struggled to survive
and employees accepted lower wages than their peers in
the industry because they believed in Frontier and the
opportunity that it presented for them to be a part of
something special. The expectation was that, as
Frontier became successful, the fruits of their labor,
as well as the risk that they took would be rewarded
with higher wages and a share of the profits.

Indeed, three years ago, the airline was showing some
profits and beginning to look as if it could have a
long-term place in the industry. At the same time, the
company began raising salaries, meaningfully
contributing to ESOP and 401K plans and rewarding
bonuses based on profitability. Credibility begins to
develop. It also adopted a compensation philosophy
applied consistently to all workgroups that everyone
would be paid a base wage that approximated the middle
of a peer group of companies. Then, based on the
profitability and success of the company, things like
ESOP, 401K and especially the bonus plan were designed
to take employees to the top of their peer group. Over
the last two years, because of the success Frontier
has enjoyed, employees have been well rewarded. Or,
maybe, because of the way employees are rewarded,
Frontier has enjoyed success. They go hand-in-hand.

The pilots worked with management to develop a
five-year contract a year and a half ago that called
for sizeable raises from a level that was a carryover
from survival days. While many on this board
criticized those raises, it should be noted that they
didn't even take them to the full level of what is now
defined as the peer group. The pilots realized that
Frontier was still at a critical point in its history
and that the company needed to demonstrate more
quarters of consistent profitability to Wall Street.
Many were quick to criticize the pilots and management
last spring when pilots' salaries were adjusted just
one year into a five-year contract. What most did not
know was this raise simply brought the pilots up to a
peer group level that was consistent with other work
groups within the company. Now everyone was
compensated consistently. Did the company have to do
this contractually? No, but this is how credibility
and trust is developed and long-term relationships are
cemented.

I applaud the actions taken last week by the pilots
and management to reduce wages and overtime in an
effort to reduce costs and retain good people. It just
shows again what can happen if you have people that
care about the company that they are a part of and a
company that cares about its people. Credibility and
trust are built and rewarded and always are a two-way
street.

In the interest of full disclosure, I should tell you
that I purchased 70,000 shares of Frontier last week
to bring the total shares I own to almost 120,000. I
believe in Frontier because I believe in the people of
Frontier.
IMHO
All the best,
Steve
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