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DENVER—Frontier Airlines Holdings Inc. said Friday it has filed for Chapter 11 bankruptcy protection but plans to continue normal business operations throughout its reorganization.
The low-fare carrier said the move came after an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets, which threatened to hurt Frontier’s liquidity.
Frontier CEO Sean Menke says the airline, whose major hub is in Denver, has been affected as other airlines have by rising fuel costs and the credit crisis in financial markets.
ATA Airlines, Skybus and Aloha Airgroup all have filed for bankruptcy, but Menke said Frontier’s reasons for doing so were different.
