The bad news: Frontier Airlines and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code yesterday, April 10, 2008.The good news: Frontier intends to continue to operate, according to a news release issued by the airline. Among other things included in the filing submitted to the court, Frontier Airlines stated that it intends "to provide employee wages, healthcare coverage, vacation, sick leave and similar benefits without interruption."
In a second Frontier Airlines press release, issued later today, the carrier announced that had received authorization from Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York to carry on with normal business operations during its reorganization.
"We are grateful that Judge Drain granted the critical first day motions that will enable Frontier to continue normal operations," said Sean Menke, Frontier President and CEO. "Importantly, the aviation professionals of Frontier are focused today -- and will be throughout the Chapter 11 process -- on delivering exceptional customer service. Our reorganization is off to a smooth start and we look forward to taking important steps to further strengthen our Company."Good luck to all F9 crew members and ground staff during the airline's reorganization.
