The frontier has always been known as a place that is less safe and secure than more established lands. Frontier Airlines declared itself to be in a similar place this week when it filed for Chapter 11 bankruptcy. When a company files Chapter 11 it is asking the courts to provide temporary protection from its creditors so that it can restructure and eventually return to normal operations.

On April 10, 2008, Frontier Airlines Holdings, Inc. filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, in the Southern District of New York. This action followed an unexpected attempt by Frontier’s principal credit card processor to substantially increase a “hold-back” of customer receipts, which threatened to severely impact Frontier’s liquidity.

Frontier Airlines intends to continue normal business operations throughout its reorganization process. Specifically, we expect to continue to:

- Operate our full schedule of flights;
- Honor tickets and reservations and provide refunds and exchanges per our standard policy;
- Maintain our EarlyReturns frequent flyer program and other award-winning customer service programs;
- Provide employee wages and benefits without interruption; and
- Pay suppliers for goods and services received during the reorganization process.

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