Did You Know That One Commercial US Airline Is In Bankruptcy. But May Be Coming Out This Fall.
Frontier Airlines based in Denver, Colorado filed for bankruptcy protection on April 10, 2008.
While many airlines had cash flow problems and have filed for
bankruptcy including the worlds largest airline Delta / Northwest.
Frontier's biggest problem was their credit card processing company, First Data Corp.
First Data Corp. elected, without much notice, to hold credit card payments to Frontier in escrow. Which would be held to pay any passengers who may demand a refund if Frontier ceased operations.
The carrier blamed it's chapter 11 protection on this new cash squeeze caused by the credit card company.
Today Republic Airways has agreed to buy 100% of the equity in Frontier for approximately 108.8 million dollars.
We believe the name Frontier will continue to remain and if all goes well Frontier should emerge from Chapter 11 bankruptcy sometime this fall.
