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| Version | User | Scope of changes |
|---|---|---|
| Apr 13 2008, 7:58 PM EDT (current) | jimglab | 198 words added |
| Apr 13 2008, 7:57 PM EDT | jimglab |
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But Denver-based carrier keeps flying
Denver-based Frontier Airlines’ parent, Frontier Airlines Holdings, has filed for Chapter 11 reorganization, but the company insists it will maintain full operations and keep flying its regular schedule. According to Frontier, the Chapter 11 filing was made necessary due to “an unexpected attempt by its principal credit card processor to substantially increase a holdback of customer receipts, which threatened to severely impact Frontier’s liquidity.” By filing for Chapter 11 bankruptcy, the airline secures an automatic stay that “prohibits the credit card processor from increasing its holdback, and we are prepared to litigate this issue if necessary,” said Frontier CEO Sean Menke. Frontier’s bankruptcy filing comes just days after three other passenger airlines filed for bankruptcy – including Aloha, ATA and Skybus – but all three of those companies stopped flying.Menke stressed that “we filed for very different reasons than those other recent carriers, and our customers and employees can be confident that we intend to keep on flying.” He noted that the airline has recently made progress in strengthening its balance sheet and getting additional financing, and said that Frontier posted record traffic levels and revenues during the month of March.
