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Frontier Airlines files for bankruptcy

frontier_airlinesAnother week, another airline bankruptcy.

Frontier Airlines has announced that they have filed for bankruptcy, but unlike ATA and Skybus they will continue to operate as it restructures.

The airline says that its credit card processor was “holding back” customer payments and threatening the airline’s liquidity, which is how then ended up applying for Chapter 11 protection.

Frontier expects to continue to:

  • Operate its full schedule of flights
  • Honor tickets and reservations and provide refunds and exchanges as usual
  • Maintain its EarlyReturns frequent flyer program and other award-winning customer service programs
  • Provide employee wages, healthcare coverage, vacation, sick leave and similar benefits without interruption
  • Pay suppliers for goods and services received during the reorganization process.

Sean Menke, president and CEO of Frontier, says “to be clear, we filed for very different reasons than those of other recent carriers, and our customers and employees can be confident that we intend to keep on flying and providing outstanding service and products.”

[Via Consumerist]


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