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Frontier Airlines Emerges From Chapter 11 Bankruptcy

Posted By admin || 6-Oct-2009

According to an article in the Star-Telegram, Frontier Airlines emerged from Chapter 11 bankruptcy under the new ownership of Republic Airways Holdings, Inc.  Republic gained control of the bankrupt airline with a $108.8 million bid in bankruptcy court, which included a plan for the cancellation of the airline's old shares. But despite the bankruptcy buyout, Frontier still has a tough fight in its Denver hub which is a competitive market. Most of Frontier's flights come through Denver because when the airline filed for bankruptcy, it eliminated most flights that did not have a Denver stop.

The article said:

"That's a competitive market, where Frontier is up against much larger United Airlines as well as discounter Southwest Airlines Co. United plus its regional partners flew 44.3 percent of Denver's domestic passengers in July, versus 24.8 percent for Frontier and 15.2 percent for Southwest, according to the airport."


But after emerging from bankruptcy, Frontier may have just enough financial edge to compete against the big boys in the Denver market. Frontier's Chapter 11 bankruptcy has allowed it to decrease debt, renegotiate labor contracts and escape from agreements that were less than lucrative, giving it flexibility not available to airlines that did have the benefits of a bankruptcy filing. A matter of fact, Frontier's bankruptcy filing has been so beneficial that it has posted a $23 million profit since filing Chapter 11 bankruptcy.

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