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-   -   Sign on/retention bonus (https://www.airlinepilotforums.com/frontier/140357-sign-retention-bonus.html)

OpsCheckOK 11-15-2022 11:39 AM


Originally Posted by fivebyfive (Post 3531708)
After the bonus tax of 22%, a pilot would be foregoing a career at a legacy airline for $27,300. I think pilots are smarter than that.

You would think; but look at all of the regional FO’s and CA’s, many with legacy CJO’s who could only see the short term. Although, their’s isn’t a one-time bonus.

Aero1900 11-15-2022 12:14 PM


Originally Posted by F9Pilot2022 (Post 3532234)
“ Retention Bonus” or just a deceptively named Training Contract?

Frontier couldn’t increase New Hire pay any more to attract Pilots because of the Contract. So instead of raising pay by $35K they have come up with this “Bonus”. A “Bonus” they can get back.

So, my question is, can you be hired and attend training without signing up for the “bonus”, not just this upcoming class but for all future classes? Is it going to be mandatory to accept this to be hired at Frontier, either explicitly or inexplicably, meaning, if you don’t want the “bonus” then you’ll never be hired? If not then it’s just another name for a Training Contract, a very expensive Training Contract. Aren’t most Training Contracts about 10K? Very bad form to spring it on the next few classes, especially if folks have already quit their other jobs and then have this thrust upon them. This should have been made very clear during the application and interviewing process. This might have looked good at first glance to the Company but I feel this will actually hurt hiring. I wouldn’t sign a 35K Training Contract, not when I could go elsewhere so easily in today’s hiring environment. I truly believe that this will reduce the pool of possible candidates looking at Frontier.

If the Company truly wanted a Retention Bonus system to keep Folks around vs a Training Contract, they should do as some other Airlines have done. A small bonus for showing up to class, a small bonus for finishing IOE, then a bigger one after a certain time period, say three years. Heck you could really lock some folks in with offering another Bonus after Upgrade. Mentally much harder to leave somewhere once you have upgraded. Now personally I’m against bonuses. I think bonuses outside the Contract is shady by the Company. It’s a way of getting around the Contract same as offering hotel rooms to New Hires. I’m not against the Hotel rooms, but doing it outside of the Contract weakens the Union’s “power”. The Company gets to offer something at it’s whim, to it’s advantage and possibly not fairly. Anything outside of a written Contract can be and is typically abused eventually.

Let’s call this what it is, an “Expensive, Non-Prorated Training Contract”.

I mostly agree with all of this except that training contracts of the past didn't pay out cash!

My old airline had a real training contract. It worked like this:

1) You sign a training contract.
2) Go to class and don't get paid a penny until you pass your checkride!
3) If you leave you owe them $7500.

This is not that. This is just the same as all the regionals have been doing for a decade now. The only lame thing about it is its not prorated. That's the real b*tch of it

PositiveRate20 11-15-2022 01:16 PM


Originally Posted by F9Pilot2022 (Post 3532234)
Frontier couldn’t increase New Hire pay any more to attract Pilots because of the Contract.

If I'm correctly understanding what's written here, I think it's incorrect. Per LOA 4, first year FO pay can be increased up to 98.5% of of second year FO pay. IMO, this is latitude that never should've been given to the company. We've allowed them to adapt to rapidly changing market conditions without having to come to the table to do so.

shrsailplanes 11-15-2022 02:05 PM


Originally Posted by Aero1900 (Post 3532302)
The only lame thing about it is it’s not prorated. That's the real b*tch of it

The pay out also isn’t prorated. The recipient gets it all at once, I think before training begins.

You have to put $10-$11K aside for taxes. I like the idea of a CD, but if you did bail early you have to come up with 35G’s of your own money to pay it back. Just put it in your sock drawer until 11-28-2025 then you are free and clear.

Aero1900 11-15-2022 02:05 PM


Originally Posted by PositiveRate20 (Post 3532331)
If I'm correctly understanding what's written here, I think it's incorrect. Per LOA 4, first year FO pay can be increased up to 98.5% of of second year FO pay. IMO, this is latitude that never should've been given to the company. We've allowed them to adapt to rapidly changing market conditions without having to come to the table to do so.

Right. Except that they can do the signing bonus anyhow. It's actually kind of surprising they didn't start with the signing bonus before going the route of the 1st year pay raise

F9Pilot2022 11-15-2022 02:16 PM


Originally Posted by Aero1900 (Post 3532302)
I mostly agree with all of this except that training contracts of the past didn't pay out cash!

My old airline had a real training contract. It worked like this:

1) You sign a training contract.
2) Go to class and don't get paid a penny until you pass your checkride!
3) If you leave you owe them $7500.

This is not that. This is just the same as all the regionals have been doing for a decade now. The only lame thing about it is its not prorated. That's the real b*tch of it

I agree, real old fashioned Training Contracts didn’t pay out cash. This is a way to get around the Contract for another increase in First Year Pay, the rhetoric of being fair to the all the “Cadet” groups is just a distraction. Frontier does what is best for them as a Company, they are not in the business of making people feel warm and fuzzy. If they were then things would be much different working here day by day. This might also be the new sneaky Training Contract of the Industry, let me explain my thoughts,

Everything depends upon whether or not you can realistically get hired without accepting the Bonus. If you can not, then this becomes a de facto Training Contract or a Employment Duration Contract or whatever name you want to give it. If in the future you can get hired without accepting the bonus then I’m totally off base and then this is just a Contract skirting Bonus with really bad repayment terms. Maybe that’s what it is, but I have my doubts.

The question is will Frontier in the future readily accept folks from both groups, those willing to accept the Bonus with it’s conditions and those that decline to accept the Bonus. If it gets to be known that you don’t stand a chance of getting a class date unless you accept the Bonus then it’s a condition of getting the job and in my mind serves the same purpose as a Training Contract which was to get people not to leave or if they did leave they paid for their training costs.
As I said before, a true Retention Bonus wouldn’t have any contract associated with it, it would be simply if you’re here on certain events or dates after you get hired then you get a bonus. No signing of paperwork before you showed up to class. No allowing Frontier access to your Bank Account so they can take money out later, no 5 days to repay or else Interest and Legal fees added. All those things are conditions typically associated with Training Contracts.

My belief that all is this is a sneaky workaround of the Contractual restriction to any further First Year pay increases coupled with a Training Contract. Again, I’ll be willing to admit I’m totally wrong IF they allow Folks the freedom to just not accept the Bonus and IF not accepting the Bonus doesn’t hurt your chances of being assigned a Training Class but who are we kidding, in the eyes of the Company/Hiring Department if you are not willing to enthusiastically jump on accepting the Bonus with it’s conditions then maybe you aren’t “Frontier Material” and maybe we don’t want you here. IF you have to be willing to accept the Bonus to stand a chance of getting a Class date then the Bonus becomes a De facto Training Contract.

brocklee9000 11-15-2022 04:04 PM


Originally Posted by shrsailplanes (Post 3532368)
The pay out also isn’t prorated. The recipient gets it all at once, I think before training begins.

You have to put $10-$11K aside for taxes. I like the idea of a CD, but if you did bail early you have to come up with 35G’s of your own money to pay it back. Just put it in your sock drawer until 11-28-2025 then you are free and clear.

Just got off the phone with some people. Sounds like it will come as a lump, unsure if they will withhold any taxes but my guess is $35K. No idea when the tax bill will be due, probably in a few months when I start my taxes.

i had the same thought. Put some into an i-bond, open a HYSA like Ally, etc. But it’ll just be simpler to set it in my savings account and just not touch it.

planejoe 11-15-2022 04:09 PM


Originally Posted by F9Pilot2022 (Post 3532377)
The question is will Frontier in the future readily accept folks from both groups, those willing to accept the Bonus with it’s conditions and those that decline to accept the Bonus. If it gets to be known that you don’t stand a chance of getting a class date unless you accept the Bonus then it’s a condition of getting the job


This is interesting, you're right it could be their way of weeding people out who are just there to "check the box" before moving on.

Aero1900 11-15-2022 04:35 PM

Interesting points brought up here.

I guess we need to know if you can opt in or out of the bonus and the 3 year agreement.

fivebyfive 11-15-2022 04:48 PM


Originally Posted by planejoe (Post 3532430)
This is interesting, you're right it could be their way of weeding people out who are just there to "check the box" before moving on.

The 35k is likely F9’s attempt to compete with the regionals for applicants. Apparently, the vast majority of recent new hires do not have the level of experience to be legacy eligible. Upon gaining an Airbus type and 1500 hrs of 121 time, they will move on regardless of having to pay back the money.


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