Frontier Airlines Files For Bankruptcy

Fourth U.S. Airline in recent weeks to file for bankruptcy.

By: WKRG Staff | WKRG-TV
Published: April 11, 2008

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DENVER (AP) - Frontier Airlines is filing for bankruptcy.
It's the fourth U.S. airline to file for Chapter 11 in recent
weeks, along with ATA, Skybus and Aloha. But unlike the others, it
plans to continue passenger service while it reorganizes.
Like all airlines, Frontier is feeling the effects of sky-high
fuel prices and turmoil in the financial markets. But the
Denver-based carrier blames the bankruptcy decision on an
unexpected move by its main credit-card processor to start
withholding significant proceeds from ticket sales. Frontier's CEO
says the Chapter 11 filing will prevent the processor from
increasing its "holdback."
Frontier announced last month that it was coping with higher
fuel costs by selling four of its planes.