Frontier files for bankruptcy

[Ankf00]

http://www.aviationweek.com/aw/generic/story.jsp?id=news/FRONT04118.xml&headline=Frontier%20Files%20For%20Ch.%2011,%20Keep s%20Flying&channel=comm

[TravelGal]

I wonder how much more hold back the company was wanting? And why. There are cases where it goes up as much as 10% in one whack. Unless it was a substantial change, it shows how close to the brink Frontier's finances are.

Frontier and AirTran were definitely the next ones to slide off the edge of the earth. Have to admit I was surprised it was Frontier but at least they have a plausible reason (or a great excuse).

[Ankf00]

their spokesman said Wells Fargo's holdback was going to be "practically 100%." Whatever that means...

Frontier's fuel costs have literally doubled in the past year, but that new Lynx regional carrier was supposed to bring in a fair amount of revenue w/ United being the main competition in that market out west.

sucks for me since Frontier's reg fares are almost as cheap as SW's sale fares and better non-stop sched too

[Ankf00]

And why.

WF's assuming Frontier's going the way of ATA/Aloha and protecting themselves

[Don Quixote]

I have Frontier tickets to San Jose at the end of the month. So far, they are saying all tickets will be honored.

[JLMannin]

I'm flying on Fronteir to Pheonix the first week in May. So far, it looks like they will continue operations during their chapter 11.

[TravelGal]

WF's assuming Frontier's going the way of ATA/Aloha and protecting themselves

Agreed, but why do they think that? Apparently they have seen some financials that differ from the general cheerful view Frontier puts out.

Holding back 100% of the charges protects the bank against charge backs but effectively stops Frontier's cash flow dead. I can see why they had to deal with that. Let's hope they can. Most airlines have been BK more than once so it is not automatically a death knell.

On the other hand, can anyone say "Alitalia"? Talk about entertaining....

[Ankf00]

Frontier's obviously not in great shape, they're selling 6 A320 series to lease back too. The Ch. 11 keeps WF from doing a thing.

[TravelGal]

From the 4/14 E-News of the Association of Retail Travel Agents:

The bankruptcy court has granted permission to Frontier to pay employee wages, healthcare coverage, vacation, sick leave and similar benefits without interruption. It can honour pre-petition obligations to customers and continue customer programs, including its frequent-flyer program. It will be able to pay for fuel under existing contracts and honour existing fuel supply, distribution and storage agreements, honour interline agreements with other airlines, continue maintenance of existing bank accounts and existing cash management systems. In other words, Frontier is operating normally.

[ChampcarShark]

I want to file for bankruptcy too. Then I can continue using my credit cards and not pay them.

Or at least it sounds like that to me.

[Insomniac]

I want to file for bankruptcy too. Then I can continue using my credit cards and not pay them.

Or at least it sounds like that to me.

I might be wrong, but they prevented Wells Fargo from holding onto their cash for an extended period of time which would've (presumably) stopped their cash flow.

[eiregosod]

must chck my shares in Aeroflot.