Sun Country Warns Of Storm Clouds Brewing | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-05.06.24

Airborne-NextGen-04.30.24

Airborne-Unlimited-05.01.24 Airborne-AffordableFlyers--05.02.24

Airborne-Unlimited-05.03.24

Mon, Oct 06, 2008

Sun Country Warns Of Storm Clouds Brewing

Petters Resignation Puts Finances, Jobs In Jeopardy

Used to relying on short-term loans from its parent company to carry it through slower times, Sun Country Airlines is bracing for the possibility of layoffs or possible closure due to last week's resignation of Petters Group Worldwide CEO Tom Petters.

Federal Investigators have charged Petters with mail fraud and money laundering, in an alleged multi-billion dollar scheme benefiting PGW. Sun Country Airlines, which Petters bought with other investors in 2006, has not been implicated in the investigation, according to the St. Paul Pioneer Press.

Sun Country CEO Stan Gladek explained Petters usually helped out during slower months with a short-term loan, sufficient to see the airline through until after the first of the year, when business typically picks up. But with Petters gone, so is the possibility of a loan.

"There are obviously risks that no solution will be found (to the company's financial troubles)," Sun Country said in a notice to its approximately 850 employees on Wednesday. "This is to notify you that should Sun Country not be able to obtain additional financing or obtain relief from our major creditors in the near future there is a distinct possibility that the airline will be shut down and/or you will be furloughed."

Although the notice warns employees this course of action may be taken as soon as December 1, Wendy Williams Blackshaw, a Sun Country spokeswoman, Thursday said "over the past week, we have made progress in negotiating with vendors and identifying additional sources of revenue."

"While Sun Country has no plans to shut down or institute a major layoff, we wanted to be sure we are in compliance with federal law," Williams Blackshaw said. Sun Country emphasized it was sending its notice to employees because the Worker's Adjustment and Retraining Act requires 60 days advance notice to employees of mass layoffs, the Pioneer Press reported.

Assuring Sun Country ticket holders of their protection, Williams Blackshaw explained the airline does not receive funds until the passengers actually fly. Credit card companies retain and "would refund those funds if for some reason any flights were canceled," she said.

Proud of their fleet comprised of environmentally-friendly Boeing 737-800 airliners, Sun Country "offers a great experience from in-flight entertainment to comfy leather seats." Based in the Twin-Cities, Sun Country offers service to 29 destinations in the US, Mexico, and the Caribbean.

FMI: www.suncountry.com

Advertisement

More News

ANN's Daily Aero-Term (05.07.24): Hazardous Weather Information

Hazardous Weather Information Summary of significant meteorological information (SIGMET/WS), convective significant meteorological information (convective SIGMET/WST), urgent pilot>[...]

ANN's Daily Aero-Linx (05.07.24)

Aero Linx: The T-6 Racing Association The T-6 Racing Association is all about T-6‘s and racing. Our mission is to bring great racing to our fans in Reno and other venues wher>[...]

Airborne 05.01.24: WACO Kitchen, FAA Reauthorization, World Skydiving Day

Also: Electra Aero, AMO-CBP v Smugglers, Naval King Airs, Boeing Deal To the surprise of everyone involved, Waco Kitchen shut down both airport operations with little warning and h>[...]

Airborne Affordable Flyers 05.02.24: Bobby Bailey, SPRG Report Cards, Skydive!

Also: WACO Kitchen Bails, French SportPlane Mfr to FL, Dynon-Advance Flight Systems, Innovation Preview Bobby Bailey, a bit of a fixture in sport aviation circles for his work with>[...]

Airborne 05.03.24: Advanced Powerplant Solutions, PRA Runway Woes, Drone Racing

Also: Virgin Galactic, B-29 Doc to Allentown, Erickson Fire-Fighters Bought, FAA Reauthorization After dealing with a big letdown after the unexpected decision by Skyreach to disco>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC