Frontier keeps flying at Sioux Gateway following Chapter 11 filing
12:28 PM
Posted: Friday, April 11, 2008
SIOUX CITY -- Frontier Airlines, which arrived at Sioux Gateway Airport last fall, sought bankruptcy protection today but insists it will keep flying.
Barbara Sloniker, marketing director at Sioux Gateway, said it's "business as usual'' at the Sioux City airport, where Frontier offers three daily flights to and from Denver International Airport.
"Frontier will continue to provide service for our customers to Denver while it works through the reorganization process,'' Sloniker said in a statement. "This is not uncommon as we have seen several of the major airlines go through a restructuring process in the last few years and emerge even stronger.''
Denver-based Frontier blamed its Chapter 11 bankruptcy filing on its principal credit card processor's "unexpected attempt'' to withhold a greater share of proceeds from ticket sales. The move "put severe restraints on Frontier's liquidity and would have made it impossible for us to continue normal operations,'' CEO Sean Menke said in a statement.
The airline said it would continue to operate a full schedule of flights, honor tickets sold and pay employees and suppliers as it reorganizes.
The credit card processor, First Data Corp., did not have an immediate comment this morning.
Frontier launched daily service to Denver in early October, joining Northwest Airlines as the only carriers at the airport. Since then, Sioux Gateway has reported seven consecutive months of triple-digit gains in passenger numbers. In March, traffic was up 230 percent, compared with the same month in 2007.
A new Frontier subsidiary, Lynx Aviation, flies the daily routes with new 74-seat Bombardier Q400 turboprop aircraft.
Siouxland leaders courted Frontier for years, offering various financial incentives.
-- Dave Dreeszen
Barbara Sloniker, marketing director at Sioux Gateway, said it's "business as usual'' at the Sioux City airport, where Frontier offers three daily flights to and from Denver International Airport.
"Frontier will continue to provide service for our customers to Denver while it works through the reorganization process,'' Sloniker said in a statement. "This is not uncommon as we have seen several of the major airlines go through a restructuring process in the last few years and emerge even stronger.''
Denver-based Frontier blamed its Chapter 11 bankruptcy filing on its principal credit card processor's "unexpected attempt'' to withhold a greater share of proceeds from ticket sales. The move "put severe restraints on Frontier's liquidity and would have made it impossible for us to continue normal operations,'' CEO Sean Menke said in a statement.
The airline said it would continue to operate a full schedule of flights, honor tickets sold and pay employees and suppliers as it reorganizes.
The credit card processor, First Data Corp., did not have an immediate comment this morning.
Frontier launched daily service to Denver in early October, joining Northwest Airlines as the only carriers at the airport. Since then, Sioux Gateway has reported seven consecutive months of triple-digit gains in passenger numbers. In March, traffic was up 230 percent, compared with the same month in 2007.
A new Frontier subsidiary, Lynx Aviation, flies the daily routes with new 74-seat Bombardier Q400 turboprop aircraft.
Siouxland leaders courted Frontier for years, offering various financial incentives.
-- Dave Dreeszen
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