Frontier Airlines Keeps Flying Through Bankruptcy
Frontier Airlines says customers weren't inconvenienced (any more than usual) on the first day of operations under a Chapter 11 (restructuring) bankruptcy. The Denver-based carrier announced it had filed for Chapter 11 early Friday and then got to work serving more than 29,000 passengers on 405 flights. According to the company, none of its flights were cancelled and three-quarters were on time. The company says it filed for bankruptcy over an issue with its major credit card processor.
Frontier says the credit card company threatened to substantially increase its holdback of customer receipts and that would have precipitated a cash crisis. The airline expects to continue operating as normal (maintaining aircraft, keeping the schedule, paying its bills and paying its employees).