Frontier Airlines files for bankruptcy

[liberal N proud]

Source: The Economic Times

NEW YORK: Denver-based Frontier Airlines said on Friday it had filed for bankruptcy after a credit card processor said it would start withholding receipts from the sale of the airline's tickets.

Frontier said in a statement it would continue to operate without disruption during the bankruptcy proceedings, offering its full schedule of flights, honoring reservations and paying employees and suppliers.

The company said it was forced to file for bankruptcy protection in a New York court "following an unexpected attempt by its principal credit card processor to substantially increase a 'holdback' of customer receipts, which threatened to severely impact Frontier's liquidity."

The move comes amid difficulties across the industry. Two discount airlines, ATA Airlines and Hawaii-based Aloha Airlines, have halted operations after declaring bankruptcy in recent weeks.


Read more: http://economictimes.indiatimes.com/International_Business/Frontier_Airlines_files_for_bankruptcy/articleshow/2944257.cms

---

That is 4 airlines in 2 weeks

[fasttense]

1. It's like watching the republican Great Depression

hit, only in slow motion.

[gear_head]

2. joyous news

less air pollution

[A HERETIC I AM]

4. I trust you walk everywhere? n/t

[gear_head]

6. Frontier pays/paid four-cents-a-gallon for fuel tax ...

the little people (other activities) pay lots more

[BlueCollar]

7. source? n/t

[gear_head]

15. try this link

http://www.salon.com/tech/col/smith/2006/02/24/askthepilot175/index.html

near the bottom of the last paragraph
on page 1

[A HERETIC I AM]

16. The article and paragraph you link to does not validate your assertion that Frontier pays only $.04

per gallon in fuel tax.

In fact, it says nothing of the sort.

On average, about 16 percent of the price of an airline ticket -- more for international trips -- is composed of surcharges: federal ticket tax; federal segment tax; passenger facility charge; federal security service fee; customs fees; international arrival and departure taxes; cargo waybill tax. Last but certainly not least, a 4.3 cent-per-gallon jet fuel tax is also passed along to consumers.

The article speaks of the Airline industry in general and the segment above - the one you draw attention to - has NOTHING to do specifically with Frontier, but rather with ALL airlines charging their customers the four cents.

If that is the best you can do at making a point, you'll have to try much harder, because that one fell flat on its ass.

You said "Joyous News" in response to the OP.

I found that curious, so I surmised you walk everywhere you need to go, with the understanding you are so concerned about pollution that you find an airline that is a major employer filing for bankruptcy protection to be "Joyous news".

To which you said:

" Frontier pays/paid four-cents-a-gallon for fuel tax ...
the little people (other activities) pay lots more"


Now....

Care to back up that absurd claim with a little more substantive evidence? Or are you just talking out of your ass?

[BlueCollar]

17. Well put

I've been in this business for a long time. Since 1983.

There are a lot of folks who haven't a clue what really goes on but you are obviously not one of them.

:thumbsup:

[leveymg]

3. To paraphrase Will Rogers:America is the first country to crash into the poorhouse in a jet airliner

[BlueCollar]

5. the credit market ...

DENVER, April 11 /PRNewswire-FirstCall/ -- Frontier Airlines Holdings, Inc. (Nasdaq: FRNT - News) today announced that, following an unexpected attempt by its principal credit card processor to substantially increase a "holdback" of customer receipts, which threatened to severely impact Frontier's liquidity, Frontier and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

[El Supremo]

8. And they had a record number of passengers in February.

Either airlines just can't stay out of the red anymore or something is fishy.

[joeybee12]

9. They're actually profitable, so this "holdback" is the reason, and

I'm not sure how this all works.

[A HERETIC I AM]

11. Only if by "Profitable" you mean "Hemorrhaging cash"

According to their own Annual Report, they have lost money for at least the last three years running and according to a source I am unable to link to, the last profitable year they had was 2004.

They have been struggling for quite a while.


http://www.frontierairlines.com/frontier/pdf/Annual_Report_2007.pdf

The pertinent info is on page 75 of this .pdf (Document page F-5)

Here is their Investor Relations page;

http://www.frontierairlines.com/frontier/who-we-are/investor-relations/annual-reports-proxy.do

[No DUplicitous DUpe]

10. Check out their stock price.... down 70% today...

http://finance.yahoo.com/q?d=t&s=frnt

[Hawkeye-X]

12. I'd buy heavily when it's low.

Frontier is doing very well, despite its bankruptcy. The only reason it went Chapter 11 is because their credit card processor is trying to increase the holdback, which threatens their liquidity. If I was Frontier, I'd find another processor and begin suing the other processor for endangering their viability.

Almost 85% of their routes are actually profitable, and it IS expected to go black and show profit just in time for the DNC convention in Denver, of which is Frontier's main hub.

Hawkeye-X

[BootinUp]

13. A decent airline imho, hope they come out of it. nt

[nwliberalkiwi]

14. Records to the Government

A few years ago they gave records of people buying tickets on their airline to the government---they did not notify the persons giving their data to Frontier Airlines that it was to be given to the government. I stopped flying with them years ago over this very incident.