AirTran is no frills, but I have to say, they've been prompt and reasonable every time I've dealt with them.

@Corydon:

My understanding is that, if the airline ceases operations, passengers left holding worthless tickets can charge back the tickets to the credit card processor. The processor is then left to try to collect the chargeback from a bankrupt airline. Card processors retain significant holdbacks from airlines that are financially vulnerable in order to cover this exposure; they can tap the holdback to cover what they can't get out of the bankruptcy. So, it's not the case that the processor was being silly or that Frontier could have just gone out and found someone else to provide this service on less onerous terms.

I've gotta join in the chorus of "Frontier is Awesome" because, well, they are. It pains me to have to fly via any other airline, Frontier truly stands above the rest.

I 'm not buying this story as presented. Still, I hope they survive.

This is what should have happened after 9/11, not to say that 9/11 was the airline's fault, but their craptastic financials dictated that any small thing going wrong should have been the end.

@Corydon: F9's impending doom has been well known about in the industry. They were unable to get any kind of bond or assurance that they would not go under that satisfied the credit card processor....

This makes me very sad. Of all the airlines I have flown in the past two years, Frontier is by far my favorite. Their fleet is clean and well maintained, their local connections from my home (Wichita KS) are typically not packed to the gills, and their flight crews are exceptionally friendly. Far better than the major lines. I just purchased tickets on them to California in another week, glad they're still flying. I just hope some of the small airlines like Frontier and Midwest Express survive the current industry meltdown.

They could have gone to Frontier and laid out their concerns and either gotten some assurance that Frontier wasn't going anywhere or verified that there was indeed a problem (which I concede there may well be, but from the information we have right now, this isn't the case).

So now the credit card processor has basically forced their client into bankruptcy. That sounds like the kind of company I'd love to do business with!

And it still doesn't explain why they were holding back 45% in the first place. Are there that many chargebacks on any given day? Is there really that much credit card fraud?

Sounds like a real scam to me. Maybe we need a Consumerist for Corporations website :P

@SadSam: @bsalamon: @Corydon: It really is simple. After Aloha and ATA going TU and telling their customers to request charge backs the Credit Card processors want to cover their asses.

WTF? Anyone know what this all about? How on Earth does a company paid to pass payments made by credit card along to you get to hold on to 100% of each charge?

I could see holding back some of the charge in case there's a chargeback or fraud or something, but even 45% sounds outrageously high to me.

Can anyone explain this?

I HATE Frontier - when my wife and I flew to Indianapolis last year, they cancelled our reservations for the return flight, claiming that we weren't on our flight TO Indianapolis. Even when we presented our ticket stubs, they stood firm on their claim.

We had to escalate several levels to get a return flight.

I won't fly Frontier again.

What's up with the CC company holding back the $?

if so why do they keep trying over and over and over?

The large presence of both United and Southwest makes DEN not a fortress hub by definition. If either one was not present, prices would be significantly higher. CVG is a fortress hub. MSP Is a fortress hub. You will find average prices from these airports significantly higher than somewhere like DEN that has healthy competition.

Frontier has very good load factors and yields compared to the other carriers who have recently gone entirely out of business. I do not believe that their location in DEN is all that relevant to their current straits.

@doireallyneedausername:

Denvr really isn't a fortress hub anymore - thankfully.

Locally we all wish them the best - With Southwest, Jetblue, and Frontier DEN is completely different than it was 10 years ago - when UAL really was the dominant carrier.

By filing Chapter 11 now, your stock might not take as big a hit if you do it later. It can be bundled into the psychology of "the airlines are in trouble" rather than "your company sucks" kind of mentality. At least now you get some breathing room and time to rethink what to do without the investors/board trying to put you on a burning stake.

They'd better pull through this--I hate to say this but there the only carrier that hasn't screwed me over (yet). I have a whole bunch of FF miles on their system.

Frontier Airlines: "Experiencing a WHOLE different animal...Bankruptcy."

Told ya.