* This is the fourth airline company to bankrupt in 2 weeks.
Frontier Airlines, Inc. (Founded 1994) is a low-cost airline based at Denver International Airport in Denver, Colorado, USA. The carrier operates flights throughout the United States, Mexico, and Canada. Frontier is a major low-cost airline with two thirds of its US destinations west of the Mississippi River. The carrier maintains its primary hub at Denver International Airport, and provides regional service to the surrounding Rocky Mountain States through a code-share agreement with Great Lakes Airlines.
In March 2007, Republic Airlines slowly began replacing Horizon Air as the operator of their feeder service, Frontier Airlines operated by Republic Airlines; Frontier JetExpress, which was operated by Horizon Air, ceased operations on November 30, 2007.
On April 10, 2008, Frontier announced that it filed for Chapter 11 bankruptcy due to its credit card processor, First Data, attempting to withhold significant proceeds from ticket sales. First Data suddenly decided that it would withhold 100% of the carriers proceeds from ticket sales beginning May 1st. According to Frontier's press release, "This change in practice would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier's liquidity..." Its operation continues uninterrupted, though, as Chapter 11 bankruptcy protects the corporation's assets and allows restructuring to ensure long-term viability.
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