Frontier Files Bankruptcy; Will Continue to Operate all Flights
The bad news continues for the beleagured U.S. airline industry as Frontier Airlines, based in Denver, today filed for Chapter 11 Bankruptcy protection.
Unlike 3 other carriers who filed made similar filings last week (Aloha, American Trans Air, SkyBus), Frontier is calling its bankruptcy a "restructuring" and intends to operate a full schedule.
The action follows what the airline called "an unexpected attempt by [our] principal credit card processor to substantially increase a 'hold-back' of customer receipts, which threatened to severely impact [our] liquidity."
The airline added that during the restructuring it will be business as usual. They will operate a full schedule of flights; honor all tickets and reservations; maintain their EarlyReturns frequent flyer program; and continue to pay employees without interruption.
Many well known U.S. airlines have been in and out of bankruptcy in the last ten years, among them United, Northwest, and Delta. So a bankruptcy filing is not necessarily fatal. That said, the challenging economic environment and the extraordinarily high fuel costs will make things more difficult for Frontier. While CheapAir does not believe that customers should necessarily avoid booking them, we would advise that you be sure to pay for any Frontier ticket(s) by credit card. That way, in a worst case scenario if the airline stops flying, you will at least be able to obtain a full refund through your credit card company.