Frontier Airlines files for Chapter 11; flights to continue, stock price falls

The value of frontier airlines stock fell by nearly 70 percent Friday with the news the Denver company had filed for Chapter 11 bankruptcy protection the day before. Frontier (Nasdaq: FRNT), which averages four daily departures from Lambert-St. Louis International Airport, filed for Chapter 11 bankruptcy late Thursday in federal bankruptcy court in New York City in response to what the airline said was a threat to its liquidity resulting from actions by its principal credit card processor,Greenwood Village-based first data corp.

The news sent the company's stock plunging. Shares closed at 48 cents, which is down $1.09, or 69.43 percent.

On its Web site, the airline said it will continue its full schedule of flights and will honor tickets and reservations and provide refunds and exchanges under its standard policies.

Frontier's frequent flyer program and customer service programs would remain unaffected, as will wages and benefits, the company said.

"All I can tell you is that our employees are extremely supportive so it's not an adverse relationship," said Joe Hodas, Frontier spokesman.

Suppliers and other vendors payments would be unaffected, the airline said.

"Frontier is committed to delivering exceptional customer service and we intend to continue delivering on that promise with normal operations throughout our reorganization process," said Sean Menke, Frontier president and CEO. "To be clear, we filed for very different reasons than those of other recent carriers, and our customers and employees can be confident that we intend to keep on flying and providing outstanding service and products."

The airline said it made the decision to file for Chapter 11 bankruptcy after First Data changed its procedures, specifically its holdback of receipts from sales of tickets to customers. That, the airline said, severely threatened its liquidity.

"Given the recent progress we have made towards strengthening our balance sheet and obtaining additional financing, it is truly unfortunate that we have had to take this action," Menke said.

Bush paid $221,635 in 2007 federal tax: White House

CRAWFORD, Texas (Reuters) - President George W. Bush and first lady Laura Bush reported taxable income of $719,274 for 2007 and paid $221,635 in federal income tax, the White House said on Friday.

Vice President Dick Cheney and his wife, Lynne, earned more than three times as much, reporting taxable income of $2,528,066 while paying $602,651 in federal income taxes, forms released by the White House showed.

The president's income included his salary as president, listed as $397,839, and income from trusts in which his assets are held. The first lady received a $150,000 advance for a children's book she co-authored with daughter Jenna, the White House said.

Mrs. Bush donated her net proceeds from the advance to Teach for America and the New Teacher's Project. President and Mrs. Bush contributed $165,660 to churches and charitable organizations, including the Volunteer Fire Department in Crawford, Texas.

The Cheneys income included $292,208 in salary, $75,420 in taxable interest, $654,730 in ordinary dividends, business income of $180,976, $1,418,428 in capital gains and $430,276 in other income.

Both the Bushes and the Cheneys had a big tax bill at the end of the year. The Bushes had to pay $17,741, while the Cheneys had to send in a check for $136,486.

The release of the president's and vice president's tax forms came as Bush spent the weekend at his Crawford ranch with his parents, brother Jeb and other family members.

(Reporting by David Alexander; Editing by Lori Santos and Eric Beech)

source:
http://www.reuters.com/article/topNews/idUSN1120215120080411