Originally Posted by
CAL PHL FLYER
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. ^