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Frontier Airlines Latest To Struggle

Frontier Airlines, a low-fare carrier based in Denver, Colo., filed for reorganization under Chapter 11 on Friday.

The company says the move is in response to its credit card processor “to substantially increase a ‘hold-back’ of customer receipts,” according to its Web site.

Frontier officials say it should still be business as usual, despite the filing; it says it still aims to maintain its full schedule of flights; honor tickets and returns through its standard policy, as well as the frequent-flier program; give employees their wages and benefits; and pay suppliers.

The filing comes on the heels of several other airlines shutting down. Aloha Airlines, ATA Airlines and Skybus Airlines have all ceased operations.

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