F9 Files for Ch11 due to liquidity issues from cc
 

http://www.frontierairlines.com/fron...ss-releases.do

Apparently, cc processing was holding back funds, creating a liquidity issue and forcing Ch11 filing, which would prevent said holdings.

F9 = Frontier Airlines for those unfamiliar

Wow. Where will this end? What is that . . . 4 carriers in the last week that have gone BK?

They say they'll continue to fly the full schedule. Operating through C11 is a little different from shutting down altogether... still, it's another bad sign. Oasis, ATA, Aloha, Champion, and Skybus wiped out in the space of a few days... and now this.

It's an insane tendency in bankrupcy cases of airlines...

I wonder what the reason is right now !?

Also the inspections of the 777 and MD80 fleet couldnt come at a worse time than now. But this hole AA they digged themselves...

New York TImes covers the story
 

The airline continues in business but credit card problems led to the action.
"The low-fare carrier said its filing Friday came after an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets, which threatened to hurt Frontier's liquidity.
The Chapter 11 filing in U.S. Bankruptcy Court in New York prevents the credit card processor from increasing its ''holdback,'' Frontier CEO Sean Menke said."

Frontier was profitable for a while and reasonably well established. I think that they're more likely to survive this (similar to NW/DL/UA's recent bankruptcy filings) than not. Then again, this is the type of thing that can cause a run on an airline. You get a large CC processor saying that they think that carrier is unstable and next thing you know, the carrier is unstable. At least Frontier has a chance here, while ATA and SkyBus had none.

With no "real" international, no p clubs, no code-shares worth a crap, it's obvious that Frontier had/has no real chance of continuing a viable operation. Both United and Southwest, who have extrememly large cash reserves, will be circling the pool with blood in it. Look for Mesa, North American, Omni Air Intl, Sun Country, Allegiant, and possibly Airtran to follow Frontier into BK.