Colorado-based airline follows three others into bankruptcy court
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Story Transcript
VOICEOVER: The news keeps getting worse for the struggling airline industry, with more trouble on the horizon after another carrier goes bankrupt. Friday, Frontier Air said it filed for Chapter 11 bankruptcy protection, a move that comes on the heels of three other airlines who recently had their wings clipped by the ongoing cash crunch. ATA Airlines, Skybus, and ALOHA Air Group each filed for bankruptcy in the last few weeks, causing cancellations and long delays for frustrated passengers. But unlike the other companies, who have grounded flights, Frontier says it plans to keep operating as normal during reorganization. Now a spokesman for the Denver-based company says its major credit card processor was planning to withhold significant proceeds from ticket sales, something Frontier says would have not allowed them to operate normally. The rest of the industry has been hard-hit as well, as they try to cope with record-high fuel prices. This week, American Airlines had to cancel more than 3,000 flights while it re-inspects hundreds of jets. Brian Thomas, the Associated Press.
DISCLAIMER:
Please note that TRNN transcripts are typed from a recording of the program; The Real News Network cannot guarantee their complete accuracy.
Story Transcript
VOICEOVER: The news keeps getting worse for the struggling airline industry, with more trouble on the horizon after another carrier goes bankrupt. Friday, Frontier Air said it filed for Chapter 11 bankruptcy protection, a move that comes on the heels of three other airlines who recently had their wings clipped by the ongoing cash crunch. ATA Airlines, Skybus, and ALOHA Air Group each filed for bankruptcy in the last few weeks, causing cancellations and long delays for frustrated passengers. But unlike the other companies, who have grounded flights, Frontier says it plans to keep operating as normal during reorganization. Now a spokesman for the Denver-based company says its major credit card processor was planning to withhold significant proceeds from ticket sales, something Frontier says would have not allowed them to operate normally. The rest of the industry has been hard-hit as well, as they try to cope with record-high fuel prices. This week, American Airlines had to cancel more than 3,000 flights while it re-inspects hundreds of jets. Brian Thomas, the Associated Press.
DISCLAIMER:
Please note that TRNN transcripts are typed from a recording of the program; The Real News Network cannot guarantee their complete accuracy.