Frontier Airlines Bankruptcy
What is going on? Frontier Airlines is seeking out bankruptcy, making this the forth airlines this month to go out of business. Unfortunately this has now become a hard business to compete in dealing with the high prices of fuel. Frontier Airlines says that they will continue their normal operations as soon as they reorganize their business.
Frontier says it will continue operations as it reorganizes. Their bankruptcy was forced after their credit card processor claimed they would be withholding a larger share of money from ticket transactions.
Frontier Airlines file for Chapter 11 in the U.S. Bankruptcy Court in New York which prevents the credit card processor from increasing their holdback charges.
Ironically, ATA Airlines, Skybus Airlines and Aloha Airgroup have all filed for bankruptcy within the last two weeks.
