Frontier Airlines files for protection

DENVER, April 11 (UPI) -- Colorado's Frontier Airlines is flying under Chapter 11 bankruptcy protection while it restructures its debt.

The airline, which filed in bankruptcy court Thursday, said an "unexpected attempt" by a major credit card processor "to substantially increase 'holdback' of customer receipts," had affected its liquidity.

As recently as Tuesday, airline spokesman Joe Hodas had dismissed the possibility that the airline was in trouble, The Denver Post reported.

The airline flies 62 planes and carries 12 million passengers annually, the report said.

Neither flights nor wages and benefits will be disrupted while it reorganizes its debt, the airline said.

John Stemmler, president of the Frontier Airline Pilots Association expressed confidence in the company's management.

"We do have faith in (chief executive) Sean Menke and his guidance to get us through this," Stemmler said. "We plan on helping in any way we can to support him."