Carrier also ends free standby policy

Denver-based Frontier Airlines, currently operating under Chapter 11 bankruptcy protection, said it has secured $75 million in debtor-in-possession financing from a private equity group called Perseus LLC. Airline president Sean Menke said the deal represents “a significant vote of confidence” by the new investors in Frontier’s ability to come through bankruptcy and revive its business. Subject to bankruptcy court approval, the agreement would permit Perseus to convert its debt into equity after the company emerges from Chapter 11, and to invest another $25 million, which would give the investor an 80 percent stake in the airline. A few days later, Frontier announced the sale of six A319s to a leasing company along with other sale/leaseback transactions that will bring in another $80 million in net proceeds. Meanwhile, Frontier also announced an end to free standby travel. For tickets bought on or after July 25, applicable for travel August 15 or later, “customers changing to a different flight the same day of their scheduled flight will receive a confirmed seat on the new flight, if available, and will now be charged a fee for the difference, if any, between their original fare and the then-current price of the new flight,” the company said. The new policy does not apply to its EarlyReturns Summit-level members, Frontier said. The airline is also increasing to $150 the fee for changing a reservation in advance of the travel date, plus the difference in fare.