F9 Files for Ch11 due to liquidity issues from cc
Apr 11, 2008, 12:54 am
#1
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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.
Apparently, cc processing was holding back funds, creating a liquidity issue and forcing Ch11 filing, which would prevent said holdings.
Apr 11, 2008, 1:19 am
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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.
Apr 11, 2008, 1:21 am
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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...
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...
Apr 11, 2008, 4:50 am
#6
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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."
"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."
Apr 11, 2008, 9:18 am
#7
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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.
Apr 14, 2008, 10:32 am
#8
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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.