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When will Frontier Cease Operations
With several airlines going out of business..Anyone have any guesses when Frontier will go out of business?..Sounds like the credit card companies move was a smart one given all the airlines that have gone aout of business..Credit card companies are just trying to protect thier money,just smart business..
Programs: CO GOLD,NW GOLD,HiltonHHonors Diamond,Priority Club Platinum Ambassador,SPG Gold,Amex Plat.
Posts: 1,530
Frontier says they are bankrupt for different reasons than others were..Yeah..Hello..Fuel is going to wipe out some airlines..This just sounds like the natural evolution of things..Looks like mergers are again on the horizon..Should be an interesting few weeks ahead..Wasnt it about 1 week after ATA declared Ch.11 that they were shutdown?
If UA can fly through bankruptcy for literally years, remain the terrible operation it is, and not cease operations, I would be very optimistic about F9's chances.
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Owing to heightened security you must comply with any crazy fake "regulation" we make up. Thank you sir.
With several airlines going out of business..Anyone have any guesses when Frontier will go out of business?..Sounds like the credit card companies move was a smart one given all the airlines that have gone aout of business..Credit card companies are just trying to protect thier money,just smart business..
From my understanding, Frontier is just practicing smart business as well by using their (only) legal means to put a moratorium on the creditor's changes. I don't think the creditor should change its terms with Frontier as a reaction to the circumstances of other airlines, but that is their prerogative of course. The situation seems to be that Frontier could've continued to do business as usual without the change in terms, but since that change was about to be imposed, they found shelter in Chapter 11 specifically to avoid the fate of Aloha and ATA.
For now, I think conditions are favorable for Frontier to continue to grace the skies with its menagerie of tails. If their cash/debt/performance figures are really as they say they are, they may simply use Chapter 11 to renegotiate with their creditors and perhaps seek a few ways to become more streamlined and emerge a stronger airline.
Seriously, I bought a ticket Thursday evening and 4 hours later, I saw on the news they filed for Chapter 11. Luckily, the travel is soon so I am not worried.
What I wonder is "do you trust what management says" and if doing this will end up scaring away passengers and lead them down the wrong path.
That really is Frontier's biggest risk, I think: that people will refrain from buying tickets whenever there is a choice of another carrier.
Bingo.
Honestly, I'd never consider buying a ticket on a rinky-dink airline that is in the process of bankruptcy dealings.... US Air, United, sure.... no way frontier!
1. Hysteria - The "when" and "what if" conversations will push business away
2. Liquidity - This being the principle reason for the CH.11 filing.
3. Investor Senitment - If the big bucks get skitsh, see points 1 & 2
Frontier is easily one of the healthier carriers in the industry and the CH. 11 filing is utilized as an instrument to remain healthy.
Just imagine your bank saying "Joe, I am sorry; but, starting April 15 we are going to hold 50% of your paycheck." Not quite an apples to apples view; but, offers a bit of perspective.
Essentially, First Data was forcing F9 to fly as a scheduled charter carrier would, using the holdback as a defacto escrow. If First Data feels this to be a business interest decision, they should apply the concept to all carriers which they service.
Outside of the fact that F9 is not designed to accommodate this accounting principle, it is a crippling disadvantage when toe to toe against WN and UA.
Honestly, I'd never consider buying a ticket on a rinky-dink airline that is in the process of bankruptcy dealings.... US Air, United, sure.... no way frontier!
Based on the surly crews and aircraft with broken seats, inoperative IFE, and hydraulic fluid staining the wings that I encountered on US and UA while they were bankrupt, I would definitely call them rinky dink. F9, OTOH, has well maintained aircraft and generally friendly crews, and indeed out of DEN has more lift to many cities than any other airline, including UA or WN. F9 has not yet earned the subjective title of "rinky dink".
Frontier says they are bankrupt for different reasons than others were..Yeah..Hello..Fuel is going to wipe out some airlines..This just sounds like the natural evolution of things..Looks like mergers are again on the horizon..Should be an interesting few weeks ahead..Wasnt it about 1 week after ATA declared Ch.11 that they were shutdown?
ATA shut down and filed for bankruptcy almost simultaneously (they finished off some flights from Hawaii back to the Mainland). Aloha filed about a week before shutting down.
