Jul 24, 08, 9:46 am
I want to book a reward ticket for sometime in May or June for Vancouver (I want to get the ticket booked before F9 goes belly up!). Anyone know when the schedule will be extended beyond April 22, 2009?
Jul 25, 08, 11:07 am
Looks like F9's chances just got better - they've managed to secure $75 million in financing. Beyond the cash injection, the fact that someone is willing to pony up this cash means they've been convinced that Frontier is strong enough to be worth investing in... definately a good sign.
News Release Issued: July 25, 2008 11:31 AM EDT
Frontier Airlines Receives Commitment for $75 Million in DIP Financing From
Affiliate of Perseus LLC
Perseus Also Agrees To Serve As Equity Sponsor for Frontier's Emergence from
DENVER, July 25 /PRNewswire/ -- Frontier Airlines Holdings, Inc. today
announced it has received a $75 million commitment in post-petition
debtor-in-possession (DIP) financing from Perseus LLC, a private investment
firm based in Washington, D.C. with offices in Evergreen, Colorado, New York
and Munich. Perseus has also agreed to serve as equity sponsor for
Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the
equity in the reorganized company for $100 million. The DIP facility and
plan sponsorship are subject to bankruptcy court approval and to various
"Today's announcement is a major boost to Frontier and builds momentum toward
its emergence from bankruptcy as a viable enterprise. The $75 million
commitment in DIP financing from Perseus is a significant vote of confidence
in the employees of Frontier, our product and business plan," said Sean
Menke, Frontier President and Chief Executive Officer. "Despite the current
challenges facing the airline industry, these transactions help point the way
towards Frontier's emergence from bankruptcy as a competitive, sustainable
"We are enthusiastic about the opportunity to invest in the future of
Frontier," said Brian Leitch, Senior Managing Director of Perseus. "We
believe that Frontier has the highest-quality affordable coach product in the
domestic airline industry. We are impressed by Frontier's excellent employees
and friendly customer service, as well as the numerous product characteristics
that distinguish Frontier from its competitors. Industry data supports our
conclusion that when given a choice, the majority of coach travelers prefer
Frontier over the competitive options. The airline industry is in a state of
transition and some degree of turmoil. Although Frontier has been buffeted by
recent fuel price increases and certain other issues, we believe that Frontier
has proven that it deserves a chance to succeed in this challenging market,
and we are proud to help it do so."
Leitch continued, "We have named our acquisition affiliate Go Flip Go, L.L.C,
as a symbol of our desire to encourage and preserve Frontier's unique cultural
attributes. Of course, we also want to support Larry, Hector, Grizwald, Jack,
Sally, the penguins and all the other Frontier animals."
Frontier filed a motion today with the U.S. Bankruptcy Court for the Southern
District of New York. Upon court approval, Perseus will provide funding under
the proposed DIP credit facility in two installments to support the company's
working capital needs.
The proposed DIP funding, coupled with Frontier's negotiations with partners
to improve liquidity, reduce expenses, and preserve cash, is expected to
provide sufficient working capital for the Company's operations. The Company
continues to work with its partners and employees to obtain additional
liquidity, reduce expenses and enhance revenues.
"We are grateful that many of our key vendors and business partners, as well
as all of our employees, have stepped up and made financial sacrifices to
help provide Frontier with a lot of staying power," Menke said. "Through a
variety of transactions and business initiatives, we have improved our
liquidity over a very short period of time. All of this support reaffirms
the fundamental business changes we have been making since the beginning of
the year. We continue to adjust capacity and realign our route network to
leverage our brand strengths and market awareness during a period of severe
Frontier and its subsidiaries filed voluntary petitions for reorganization
under Chapter 11 of the U.S. Bankruptcy Code on April 10, 2008. More
information about Frontier's Chapter 11 proceedings is available at
http://www.frontierairlines.com/restructure. Court filings and claims
information are available at http://www.frontier-restructuring.com/.
Frontier's principal bankruptcy counsel is Davis Polk & Wardwell.
About Perseus LLC
Perseus LLC is a private equity fund management company headquartered in
Washington, D.C., with offices in Evergreen, Colorado, New York and an
affiliate office in Munich. Since its inception in 1995, Perseus has invested
in numerous buyout and growth equity transactions in the United States,
Canada, and Western Europe. Perseus manages seven investment funds with
capital commitments exceeding $2.0 billion.
About Frontier Airlines Holdings, Inc.
Frontier Airlines Holdings, Inc. is the parent company of Denver-based
Frontier Airlines. Currently in its 15th year of operations, Frontier
Airlines is the second-largest jet service carrier at Denver International
Airport, employing more than 5,000 aviation professionals. Frontier Airlines'
mainline operation has 60 aircraft with one of the youngest Airbus fleets in
North America. Frontier Airlines' mainline operations offer 24 channels of
DIRECTV® service in every seatback along with a comfortable all-coach
configuration. In conjunction with a fleet of ten Bombardier Q400 aircraft
operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.),
Frontier offers routes to more than 50 destinations in the U.S., Mexico,
Canada and Costa Rica. In November 2006, Frontier and AirTran announced a
first-of-its-kind integrated marketing partnership that offers travelers the
ability to reach more than 80 destinations across four countries with low
fares aboard two of the youngest fleets in the industry. For more in-depth
information on Frontier Airlines, please visit its Web site at
Safe Harbor Statement under the Private Securities Litigation Reform Act of
Statements contained in this press release that are not historical facts may
be forward-looking statements as that item is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties that could result in actual results differing
materially from expected results and represent the Company's expectations and
beliefs concerning future events based on information available to the Company
as of the date of this press release. The Company undertakes no obligation to
publicly update or revise any forward-looking statements to reflect events or
circumstances that may arise after the date of this press release. Additional
information regarding risk factors that may affect future performance at the
Company are contained in the Company's SEC filings, including without
limitation, the Company's Form 10-K for its fiscal year ended March 31, 2008.
SOURCE: Frontier Airlines Holdings, Inc.
CONTACT: Corporate Communications of Frontier Airlines, +1-720-374-4560,
Web site: http://www.frontierairlines.com/
Aug 1, 08, 2:20 pm
I want to get the ticket booked before F9 goes belly up!
In the scenario where F9 did go out of business (which I certainly am not saying I think is likely), I'm not sure how having a booked award ticket would help you. I doubt another airline would honor the ticket since it was "paid for" with F9 miles, which would become worthless if F9 were out of business, and so the other carrier would basically have to agree to transport you for free.