Frontier Airlines Files for Chapter 11 Reorganization
Apr 11, 2008, 9:55 pm
#31
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The nation's biggest airlines have hoarded about $19 billion in cash as of the end of 2007, according to a tally by Calyon Securities analyst Ray Neidl. Even if fuel stays at today's levels and revenue drops 2 percent, they would still have $14.7 billion in cash at the end of 2009, under Neidl's estimate.
That's less cash than the 10 percent of revenue they like to keep but enough to hold off a crisis, analysts say. The only carrier in Neidl's analysis with less than 5 percent of revenue in cash at the end of 2009 would be Denver-based Frontier Airlines, which would have just $4 million by then.
That's less cash than the 10 percent of revenue they like to keep but enough to hold off a crisis, analysts say. The only carrier in Neidl's analysis with less than 5 percent of revenue in cash at the end of 2009 would be Denver-based Frontier Airlines, which would have just $4 million by then.
...and the factual information about selling of planes and creating the Commuter Pass.
Most certainly if F9 was flush, they wouldn't have had to declare C11.
Apr 12, 2008, 1:51 am
#32
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I'll thank you to directly quote my post next time and avoid insults like "you don't have a clue." My opinion is based on a Rocky Mountain News article indicating that F9's cash was among the lowest of all carriers...
Apr 12, 2008, 3:19 am
#33
Join Date: May 2006
Posts: 4
re:Frontier bankruptcy protection
Hi everyone....We booked for Aug.2008 a day before Frontier declared for protection....so what are my options?
Tickets are non refundable but if flights stopped completely I may have to rebook at higher prices on another airline?
At the same time someone suggested I book another same flight with refundable option?
thanks if you can help me decide what I should do ....
Tickets are non refundable but if flights stopped completely I may have to rebook at higher prices on another airline?
At the same time someone suggested I book another same flight with refundable option?
thanks if you can help me decide what I should do ....
Apr 12, 2008, 6:15 am
#34
Join Date: Jun 2005
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Programs: AA GLD, soon-to-be PLT in 2 weeks!
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Hi everyone....We booked for Aug.2008 a day before Frontier declared for protection....so what are my options?
Tickets are non refundable but if flights stopped completely I may have to rebook at higher prices on another airline?
At the same time someone suggested I book another same flight with refundable option?
thanks if you can help me decide what I should do ....
Tickets are non refundable but if flights stopped completely I may have to rebook at higher prices on another airline?
At the same time someone suggested I book another same flight with refundable option?
thanks if you can help me decide what I should do ....
Apr 12, 2008, 6:48 am
#35
Join Date: Jan 2004
Location: Louisville, KY, USA
Posts: 2,583
Support Frontier
Living in Louisville, Frontier is not often a good option. I have used its IND-CUN Christmas routing now for several years and enjoy the plane and service. They have recently discontinued that route and I will miss it. Perhaps for the season they will either add it back or continue their BNA-CUN.
Anyhow, I've always found Frontier to be a very special airline and a bargain compared to legacy carriers. I urge those of you who fly it regularly to stay the course and support it. If its existing base abandons it, we will all suffer the loss.
Good luck Frontier.
Anyhow, I've always found Frontier to be a very special airline and a bargain compared to legacy carriers. I urge those of you who fly it regularly to stay the course and support it. If its existing base abandons it, we will all suffer the loss.
Good luck Frontier.
Apr 12, 2008, 7:01 am
#36
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Everyone can apologize for F9 as much as they want, but the plain fact is that if they had had enough cash to avoid C11 and litigate with First Data, they would have. The fact that they did go to C11 indicates to me that they were critically low on cash.
Apr 12, 2008, 1:44 pm
#38
Join Date: Nov 1999
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Credit-card collateral led to bankruptcy filing
By David Milstead, Rocky Mountain News
Saturday, April 12, 2008
Many companies file for bankruptcy, but few blame their credit-card processor.
Frontier Airlines laid its surprise filing directly at the feet of Greenwood Village-based First Data, the company that helps process the payment when a customer buys a ticket to fly. First Data, in turn, pointed at "current economic conditions."
Regardless, Frontier's filing drew attention to the little-known world of credit-card processing and the industry rules that govern who's responsible when someone cannot pay.....
First Data's attempt to protect itself actually pushed Frontier to seek bankruptcy protection, the airline said. In its filing, Frontier said First Data sent a letter Tuesday demanding an increase in collateral from $54.5 million to $130 million, effective Friday.
Frontier conceivably could have written a check, wiping out roughly half of its available cash. Or First Data could have increased the collateral by holding back a bigger chunk of Frontier's credit-card receipts. That would have choked off the company's primary source of cash..... (my bold)
http://www.rockymountainnews.com/new...ruptcy-filing/
By David Milstead, Rocky Mountain News
Saturday, April 12, 2008
Many companies file for bankruptcy, but few blame their credit-card processor.
Frontier Airlines laid its surprise filing directly at the feet of Greenwood Village-based First Data, the company that helps process the payment when a customer buys a ticket to fly. First Data, in turn, pointed at "current economic conditions."
Regardless, Frontier's filing drew attention to the little-known world of credit-card processing and the industry rules that govern who's responsible when someone cannot pay.....
First Data's attempt to protect itself actually pushed Frontier to seek bankruptcy protection, the airline said. In its filing, Frontier said First Data sent a letter Tuesday demanding an increase in collateral from $54.5 million to $130 million, effective Friday.
Frontier conceivably could have written a check, wiping out roughly half of its available cash. Or First Data could have increased the collateral by holding back a bigger chunk of Frontier's credit-card receipts. That would have choked off the company's primary source of cash..... (my bold)
http://www.rockymountainnews.com/new...ruptcy-filing/
Apr 14, 2008, 11:47 am
#40
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Apr 14, 2008, 6:46 pm
#41
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I wonder whether today's rise in F9's stock is a dead cat bouce.
I'm a big fan of F9, but as a well-run airline in a tough credit market, it's difficult to see how the common stock shares wouldn't be cancelled when they emerge from bankruptcy. If nothing else, this would open an opportunity to issue new shares to provide additional funding for the airline--particularly one that appeared to be profitable in its most recent month (March '08), based on loads.
I'm a big fan of F9, but as a well-run airline in a tough credit market, it's difficult to see how the common stock shares wouldn't be cancelled when they emerge from bankruptcy. If nothing else, this would open an opportunity to issue new shares to provide additional funding for the airline--particularly one that appeared to be profitable in its most recent month (March '08), based on loads.