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Frontier files for bankruptcy

SmarterTravel

Frontier Airlines filed for Chapter 11 Friday morning, making it the fourth airline to announce bankruptcy in the last two weeks. Unlike ATA, Aloha, and Skybus, however, Frontier plans to continue flying.

The Denver-based airline cites its principal credit card processor for its bankruptcy, as the company was about to begin withholding a greater share of ticket sales proceeds. With Chapter 11 protection in place, the credit card processor will be unable to implement its plan, giving Frontier the necessary time and legal protection to strengthen its financial base.

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