RickSeaney.com

Search

Search Past Articles:

Categories

Archives

  • Blogroll

    • April 11, 2008

    Chapter 11 for Frontier, but THE AIRLINE WILL KEEP FLYING

    Filed under: Airlines — Rick Seaney @ 9:31 am

    Frontier Airlines has announced it’s filed for Chapter 11 bankruptcy protection, but unlike other airlines in the past few weeks, Frontier is NOT shutting down; all operations will continue as usual.

    The carrier a nice page on their website explaining all this, and it include FAQ’s for customers which boils down to this: nothing will change.

    It appears to be a matter of a cash crunch for Frontier; according to the AP, Frontier blamed its Friday filing on “an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets” which could hurt the carrier’s liquidity. The credit card companies are probably doing this in the wake of the several airlines going out of business and leaving them on the hook for refunds to card holders.

    Bear in mind that, in the aftermath of 9/11, numerous legacy carriers sought bankruptcy protection and kept flying (and are still flying).
    « TIPS for the STRANDED, as American Cancels 2,000+ Flights   United Airfare Hike — Now ALL the Legacy Airlines Have Matched »

    No Comments »

    No comments yet.

    RSS feed for comments on this post. | TrackBack URI

    Leave a comment

    XHTML ( You can use these tags): <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> .