Frontier Airlines bankrupt today!

Apr 11th, 2008, 01:23 AM
  #1  
Original Poster
 
Join Date: Apr 2007
Posts: 53
Frontier Airlines bankrupt today!

fourth US airline, 5th overall in last week. This is getting ridiculous. I guess we should travel now before flying costs 10,000 $ to fly to new york, on coach!
kevin109 is offline  
Apr 11th, 2008, 04:20 AM
  #2  
 
Join Date: Jun 2006
Posts: 17,549
"Poor business practices" again, perhaps???????
Dukey is offline  
Apr 11th, 2008, 04:24 AM
  #3  
 
Join Date: May 2007
Posts: 669
That's a shame. I've flown Frontier to Mexico several times and have had good experiences.
mjz_kc is offline  
Apr 11th, 2008, 05:19 AM
  #4  
 
Join Date: Sep 2003
Posts: 1,762
Frontier is in capter 11 and they will keep flying and try to pull out of their issues. it is a shame that the trigger was a credit card company trying to boost their cut of the ticket price. I've said it before and I'll say it again, de-regulation to the extent it was done was a mistake. The industry is a mess and the Bozo in the White House continues to not pay attention to domestic issues..... as he said in the begining he can only focus on one thing at a time (the war on terror). Wish the rest of us in the workplace had that luxury!
seafox is offline  
Apr 11th, 2008, 06:47 AM
  #5  
mms
 
Join Date: Jan 2003
Posts: 17,063
We flew Frontier last week for the first time. Much better than most, and I do hope they are able to continue operations.
mms is offline  
Apr 11th, 2008, 07:19 AM
  #6  
 
Join Date: Feb 2004
Posts: 23,074
Let me emphasize again, F9 is in Ch11 filing. It is continuing normal operation.

People need to know the difference.
rkkwan is offline  
Apr 11th, 2008, 07:22 AM
  #7  
 
Join Date: Nov 2006
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Don't make assumptions without understanding how the system works. Doubt if was poor business practices. This has been a lean and efficiently run airline. The big issue is the current lack of flexibility in the credit markets. Credit card processors have a habit of holding back funds for firms that engage in heavy future sales -- Float. When any airline sells a ticket for a future flight they do not earn that revenue until the flight occurs -- that could be hours or months. The cc processor only advances a portion of the ticket sales (maybe 40, 50%) at the point of sale and holds back the balance until the service is delivered. Of course, the cc processor is protecting their intersts. That can produce a enormous bubble of free cash or float that the airline can use. It is report that the Frontier cc processor decided to increase the hold back to nearly 100% thus effectively killing the float. With no short term credit being available because of the currently liquidity in the credit market, Frontier was instantly out of cash. Another of the many victims of the current credit crunch. There will be more.
fmpden is offline  
Apr 11th, 2008, 07:28 AM
  #8  
 
Join Date: Apr 2007
Posts: 7,070
Frontier is an excellent airline and on of my favorites. I hope they can get through this and continue to operate. Losing them would be a big loss for our area as they offer excellent schedules to the west coast, Alaska, and Mexico from here.
Reisender is offline  
Apr 11th, 2008, 08:04 AM
  #9  
 
Join Date: Apr 2003
Posts: 19,419
Frontier was good. I'll miss it.

Do I sound like writing a eulogy
FainaAgain is offline  
Apr 11th, 2008, 09:06 AM
  #10  
 
Join Date: Nov 2006
Posts: 7,339
It is chapter 11 --- a long ways from being dead.
fmpden is offline  

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