How long until Frontier Airlines stops flying?
Yes, I know they're still flying right now despite filing for bankruptcy, but will they emerge from bankruptcy or will they join ATA, Champion, and Aloha and "go down in history?"
- The ShadowLv 61 decade agoFavorite Answer
No one can predict this. Any answers given here are purely guesses. However, Frontier's situation is much different than the other airlines that you mention.
Unlike Aloha, Frontier did not run out of money. Unlike ATA, they did not lose a major military contract and fly mainly in low-revenue leisure markets. Unlike Champion, they are not dependent on charter business. It's an entirely different situation.
Frontier filed for bankruptcy to protect their cash reserves from their credit card processor. Their processor is imposing a huge cash reserve for their own protection in case Frontier were to stop flying and refunds became necessary - even though Frontier had not filed for bankruptcy and didn't plan to at the time. Ironically, this new requirement had the potential to become a self-fulfilling prophecy. By keeping large amounts of Frontier's ticket money for itself, the processor could have caused Frontier to run out of cash and drive it into bankruptcy. Instead, Frontier proactively declared bankruptcy in order to keep its money.
If the bankruptcy court rules in Frontier's favor, then they may survive. Many airlines have survived bankruptcy in the past. If the court allows the credit card processor to keep more money, then they may not. Of course, the future cost of jet fuel and the overall economy play a large part in this, too.Source(s): Numerous news media reports. Take your pick.
- mobilemarkLv 71 decade ago
other airlines have been though Bankruptcy before and never stop flying (Contintental, is an example)
- xKLv 71 decade ago
I hope it can spring out of it. I just flew with them for the first time in October, and it was a very pleasant flight. I just wish some of their flights were cheaper.
- Anonymous1 decade ago
some time late 2008. damn thats my al time favorite airlines next to u.s. airways