Frontier Airlines has become the latest US carrier to file for Chapter 11 bankruptcy protection.

The Denver-based low-cost carrier says it and its subsidiaries have filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code. It says all flight operations will be maintained, however.

It says the filing is the result of “an unexpected attempt by its principal credit card processor to substantially increase a ‘holdback’ of customer receipts, which threatened to severely impact Frontier’s liquidity”.

Frontier, which operates more than 60 Airbus A320-family aircraft, is the latest US carrier to file for Chapter 11, although others that have done so in the market in recent weeks such as Aloha, ATA and Skybus have ceased op

This entry was posted on Friday, April 11th, 2008 at 9:48 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.