Bloodbath 2008: Chapter 11 doesn't quite kill Frontier...yet

Unlike the other victims of Bloodbath 2008, Frontier Airlines has decided to try and stay afloat after it filed Chapter 11 bankruptcy late last night by not shutting down operations. The AP writes that Frontier said "its filing … came after an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets, which threatened to hurt Frontier's liquidity." The airline's CEO is confident that while under Chapter 11 protection, they will be able to find additional financing and enhance their liquidity. I hope they didn't throw out all of those "pre-approved" credit card offers. They may need one.

Frontier is the first airline in the last several weeks with severe financial difficulties not to stop operating unlike those other quiters. They'll keep chugging along like everything is normal, for now. But for how long can they stay above water? I'm willing to take bets on this one.

Oh yeah, earlier this week I predicted that Frontier would be the next to go down. They haven't quite gone down, but I was pretty close in that prediction.

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