snip
On Sun, 13 Apr 2008 02:00:06 -0700 (PDT), Too_Many_Tools
wrote:

If you wondered how fragile "The System" is, try reading this....

It can happen to any company or anyone.

TMT

Credit card trouble pushed Frontier over By JOHN WILEN, AP Business
Writer
Fri Apr 11, 7:03 PM ET

Frontier Airlines, the latest airline to file for bankruptcy, was
pushed over the brink by a problem that could spread to other
carriers: credit card troubles.
snip
The move ends a policy under which the processor, First Data Corp,
passed on most money from ticket sales to Frontier. The change is
intended to protect First Data, which would be on the hook for ticket
refunds if Frontier stops flying. ==Frontier plans to continue operating
while in bankruptcy.== {Emphasis added.}
================
This is yet another way the provident, solvent and thrifty take
it in the shorts.

Why should Frontier keep flying? The only thing they will do is
squeeze the hourly employees harder and minimize
maintenance/cleaning, after getting huge "debtor in possession"
loans at extortion rates.

This is the second bankruptch for Frontier
http://en.wikipedia.org/wiki/Frontie...nes_(1950-1986)
On October 24, 1986, Continental Airlines, a Texas Air unit,
bought both People Express and Frontier Airlines. They were
merged into Continental on February 1, 1987 along with New York
Air and all other Continental airline subsidiaries. Frontier's
failure also doomed People Express, New York Air and four
commuter carriers. It would take years to settle the pension
disputes and lawsuits. Efforts were still being made in 2007 to
settle ESOP accounts.

history
http://en.wikipedia.org/wiki/Frontier_Airlines
On April 10, 2008, Frontier announced that it filed for Chapter
11 bankruptcy due to its credit card processor, First Data,
attempting to withhold significant proceeds from ticket sales.
First Data suddenly decided that it would withhold 100% of the
carriers proceeds from ticket sales beginning May 1st.[2]
According to Frontier's press release, "This change in practice
would have represented a material change to our cash forecasts
and business plan. Unchecked, it would have put severe restraints
on Frontier's liquidity..." Its operation continues
uninterrupted, though, as Chapter 11 bankruptcy protects the
corporation's assets and allows restructuring to ensure long-term
viability.

This sounds like a classic mob "squeeze play." In another thread
someone suggested that the credit card executives would be up
before congress explaining/justifying their role in the credit
debacle. This action by First Data may well be what starts that
particular ball rolling. 100% holdback????


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).