Frontier Airlines Files for Bankruptcy
Frontier Airlines on Friday became the latest budget carrier to file for bankruptcy protection, but the airline promised to continue normal operations.
Frontier, based in Denver, said it had filed for protection after its main credit card processor tried to hold back substantial proceeds from its tickets sales. But the airline said it would continue to operate its full schedule of flights and honor ticket reservations.
“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,” Sean Menke, Frontier president and chief executive officer, said in a statement. He said the airline promised to continue “normal operations throughout our reorganization process.”
On Wednesday, Oasis Hong Kong Airlines, a long-haul budget carrier that tried to offer premium service and spacious seats at low prices, suddenly went into liquidation and canceled all flights. At that time, it was the fourth budget carrier worldwide to halt operations over a period of a week and a half. The series of bankruptcies could undermine travelers’ confidence in budget airlines.
The high price of jet fuel has taken a heavy toll on the airline industry and particularly on low-margin discount carriers. The other three to shut down since March 31, all in the United States, are Aloha Airgroup, ATA Airlines and Skybus Airlines.
“We felt that Frontier would be able to withstand the challenges confronting the U.S. airline industry, which include unprecedented and significant increases in the cost of jet fuel and the impact of the credit crisis in the financial markets, without seeking bankruptcy protection,” Mr. Menke said in the statement.
Frontier said that it is in its 14th year of operation, and that it offers routes linking its Denver hub to 70 destinations.
In the case of Oasis, the bankruptcy filing stranded thousands of passengers in Hong Kong, London and Vancouver. Many of the would-be passengers stuck in Hong Kong were children trying to return to British boarding schools after spring break.
TheNewYorkTimes
Frontier Airlines on Friday became the latest budget carrier to file for bankruptcy protection, but the airline promised to continue normal operations.
Frontier, based in Denver, said it had filed for protection after its main credit card processor tried to hold back substantial proceeds from its tickets sales. But the airline said it would continue to operate its full schedule of flights and honor ticket reservations.
“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,” Sean Menke, Frontier president and chief executive officer, said in a statement. He said the airline promised to continue “normal operations throughout our reorganization process.”
On Wednesday, Oasis Hong Kong Airlines, a long-haul budget carrier that tried to offer premium service and spacious seats at low prices, suddenly went into liquidation and canceled all flights. At that time, it was the fourth budget carrier worldwide to halt operations over a period of a week and a half. The series of bankruptcies could undermine travelers’ confidence in budget airlines.
The high price of jet fuel has taken a heavy toll on the airline industry and particularly on low-margin discount carriers. The other three to shut down since March 31, all in the United States, are Aloha Airgroup, ATA Airlines and Skybus Airlines.
“We felt that Frontier would be able to withstand the challenges confronting the U.S. airline industry, which include unprecedented and significant increases in the cost of jet fuel and the impact of the credit crisis in the financial markets, without seeking bankruptcy protection,” Mr. Menke said in the statement.
Frontier said that it is in its 14th year of operation, and that it offers routes linking its Denver hub to 70 destinations.
In the case of Oasis, the bankruptcy filing stranded thousands of passengers in Hong Kong, London and Vancouver. Many of the would-be passengers stuck in Hong Kong were children trying to return to British boarding schools after spring break.
TheNewYorkTimes
