I was quite surprised this morning when I learned that Frontier Airlines had filed for bankruptcy. For those of us that live in Colorado - this could be a big deal. I've had the pleasure of relaxing, direct, on-time flights (usually even early) for about 3 years now and wouldn't want it any other way.

Frontier announced yesterday that they had filed for Chapter 11 in order to reorganize due to their credit card company processor wanting to "hold-back" customer receipts. From what I understand, Frontier owes something like 93 Million and First Data, as well as Wells Fargo, wants to start collecting. As of yesterday, the processing company told Frontier they would be taking significantly more from their ticket sales than they previously had.

Sean Menke, the CEO said the following in a Denver Post article syndicated today: "Frontier will now have the time and legal protection necessary to obtain additional financing and enhance our liquidity," Menke said in the company's statement. "We currently have adequate cash on hand to meet our operating needs while we take steps to further strengthen our company."

Conversely, Forbes published this statement: Friday's bankruptcy filing "came as no surprise," said Calyon Securities analyst Ray Neidl, "though it happened more quickly than we expected." Neidl added that tough competition in Denver from United Airlines and Southwest Airlines will prove the demise of Frontier." The article in Forbes also states: "This is not a troubled airline," countered Michael Boyd, an independent airline industry consultant in Englewood, Colo. Boyd argued that Frontier is a victim of "gossip and innuendo in the media." He explained that credit card companies withhold certain amounts of cash to protect themselves.

However, Frontier still managed to send out a reassurance letter to their Early Returns (their incredible frequent flyer program that has gotten me a few free round trip tickets) members. I got one today at 12:45pm. Now, some may expect this, a COUPLE days, or even a week later. Nope - Frontier Airlines managed to send it out today. That's a class act in my book. Now, I have A LOT of travelling to do this summer and I plan on doing it all with Frontier. As I said, I wouldn't want it any other way. I'm not sure what I would do if Frontier Airlines ceased to exist. My travel world would be turned upside down.

Tags: frontier airlines, chapter 11, travel, forbes