Wed, Mar 11, 2009
Airline Continues Path To Recovery
Sun Country Airlines continues on the road to recovery, even at
a time when many other carriers are ailing. The niche
carrier announced Tuesday it had repaid in full the Debtor in
Possession financing loan the airline received in December
2008.
"This is a significant achievement as we continue to position
Sun Country as a successful, profitable, low-fare airline based in
the Twin Cities," said president & CEO Stan Gadek. "Sun Country
has become more efficient and financially stronger despite adverse
circumstances. Our success is due to the loyalty and dedication of
every member of the Sun Country team and the continuing strong
support of our customers."
Fortunes turned decidedly against Sun Country last year, when
parent company Petters Aviation, LLC filed for Chapter 11
bankruptcy protection on October 6. The capitulation came about two
weeks after the offices of Petters Group Worldwide were raided by
federal agents. Company founder Tom Petters resigned as chairman of
Sun Country's board of directors soon afterward, under clouds of
accusation and a strong whiff of corporate malfeasance.
Despite the turmoil, Gadek asserted his airline would continue
flying... though employees were asked to accept two rounds of pay
cuts through the end of the year, as the decline of Petters tanked
the airline's chances of securing outside loans to cover regular
payroll.
At the time, Gadek also promised those cuts would be
short-lived. The airline allowed certain pay concessions to lapse
December 31, as planned, and employees were reimbursed for 40
percent of their early October wage sacrifices on their end of year
paychecks. The airline plans to pay back the rest of the deferred
wages by April -- plus three percent interest, for what amounted to
a loan from the airline's workforce.
As ANN reported, Sun Country reported in
January its first fourth quarter profit since 2002. The airline
also projects a profit for the first quarter of this year, and full
year 2009 -- its first in many years.
"We are doing things right and building a strong foundation for
a solid future," Gadek said.
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