Frontier Airlines files for bankruptcy

colomtnflyer

colomtnflyer

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iAM in AK!
Nope- not a late April Fool's joke... :hairraise:

I just heard this on the radio, but like usual, it was just a sound bite with no real details. :confused:

I'm bummed because they were one of my direct connections back to Denver..... :dunno:
 
I believe that this is a strategic filing- they allegedly have sufficient capital to continue operations, but were faced with increased hold-bcaks by the credit card clearing house with which they do business.

If I get a little more time later in the morning, I'll try to pull up their initial filings to see what's up...
 
SCCutler said:
I believe that this is a strategic filing- they allegedly have sufficient capital to continue operations, but were faced with increased hold-bcaks by the credit card clearing house with which they do business.

If I get a little more time later in the morning, I'll try to pull up their initial filings to see what's up...
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Hold-backs for fear in the industry? The credit companies want to mitigate potential losses?
 
More here.

Rocky Mountain News said:
Denver’s high-flying, low fare air carrier Frontier Airlines filed for Chapter 11 bankruptcy early this morning, saying it plans to continue normal business operations throughout its reorganization. The homegrown carrier said Friday the move came after an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets, which threatened to hurt Frontier's liquidity.
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I hope they make it because I know a lot of people who work at Frontier. It's also my airline of choice as a passenger.
 
KennyFlys said:
Hold-backs for fear in the industry? The credit companies want to mitigate potential losses?
Click to expand...

Kenny that appears to be exactly what happened. According to this morning's Philadelphia Inquirer Frontier claims that its CC processing company, First Data' is now keeping a larger chunk of the Airlines Ticket fees as they are concerned because they will be responsible for refunding the ticket price IF the airline stops flying.

Apparently the processor "suddenly" changed its policy and the bankruptcy filing will prevent them from implementing the change.
 
Remember the "old" days, when a contract wasn't full of "we can change these terms unilaterally" weasel-language?
 
AdamZ said:
Kenny that appears to be exactly what happened. According to this morning's Philadelphia Inquirer Frontier claims that its CC processing company, First Data' is now keeping a larger chunk of the Airlines Ticket fees as they are concerned because they will be responsible for refunding the ticket price IF the airline stops flying.

Apparently the processor "suddenly" changed its policy and the bankruptcy filing will prevent them from implementing the change.
Click to expand...
The filing sounds like a prudent action on Frontier's part. As much as it may hurt their image to file, now is not the time to have an unnecessary slow down in cash flow. I'm thinking First Data may have cut their own throat with that action. A bankruptcy judge will be inquiring of their action, I'm sure.
 
Boy, Congress really has their act together. Why can't we just figure out a fair "fuel surcharge" with a realistic index to their fuel costs and add it to free market ticket prices?
Would'nt this still let some hedge by still buying fuel futures ( ala Southwest). These airlines can't continue to bleed cash forever.
 
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Poor Jack....
 
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