Frontier looks to former chairman for guidance

By Chris Walsh, Rocky Mountain News (Contact)

Thursday, July 24, 2008

Ken Papaleo / The Rocky 2007

Sam Addoms, former chairman and a co-founder of Frontier Airlines, talks to a Rocky Mountain News reporter in 2007. The airline has turned to Addoms, who stepped down last fall, for advice as it struggles through Chapter 11 bankruptcy protection.

Looking to revise its budget after announcing job cuts and flight reductions, Frontier Airlines reached into its past for guidance on its future.

The Denver-based carrier, which is operating in Chapter 11 bankruptcy, brought back none other than Sam Addoms, the iconic co-founder of the company, who stepped down as chairman last fall and retired to his home in Walden.

Addoms, 68, rejoined Frontier for several weeks this summer to help the carrier identify ways to lower costs and adjust its budget in the face of soaring fuel expenses.

"He looked at the current budget levels as well as the proposed cuts and offered his recommendations," said Frontier spokesman Steve Snyder. "He provided some historical perspective as to where we had been in the past with spending and where he thought we could achieve cost savings now, as well as what he thought we needed to preserve."

The company faced some significant financial and competitive hurdles when Addoms and then-Chief Executive Officer Jeff Potter left last September.

But it's in a much more dire situation now, as the company fights for its very survival. Frontier recently announced plans to ground seven planes, lower its capacity by 17 percent and cut an undisclosed number of jobs. It has since informed state officials that it will eliminate a least 569 local positions.

For Frontier, the decision to bring in Addoms for guidance during these challenging times was a no-brainer.

"Our finance staff is stretched thin because of our bankruptcy, and we needed to bring someone in to help oversee the rebudgeting process," Snyder said. "Obviously, Sam is very familiar with the organization, and he's been through his fair share of budgets. He has a sharp eye for numbers, and he's very much beloved in this company."

Addoms is a legend within the walls of Frontier's headquarters near DIA.

He created a "no secrets" culture within the company that encouraged open communication between executives and employees. He also helped grow Frontier into a $1 billion-plus company and the second-largest carrier at Denver International Airport, guiding the airline through challenging times such as after the Sept. 11, 2001, terrorist attacks.

"Sam is a guy who has a history of pulling rabbits out of his hat," said Andrew Hudson, a former Frontier executive who worked with Addoms. "He's a guy who transcended the greatest odds and made the airline successful. I can't picture anybody else who'd be better in terms of the amount of respect he brings and the effect on morale he has."

walshc@RockyMountainNews.com or 303-954-2744

Sam Addoms career bio * Held executive and consulting positions at startup companies in several industries, most notably banking

* Taught briefly at the University of Northern Colorado

* Served as chief financial officer and, later, president and CEO of meat-packing company Monfort of Colorado

* Co-founded Frontier Airlines in 1994, eventually serving as its president and chief executive officer. He served in the role of chairman from 2001 until last year.