All Flights Halted
The Great Plains
Airlines ticket counter is abandoned at St. Louis MidAmerica
Airport. Passengers are stranded. Another airline has gone
belly-up.
Great Plains filed for Chapter 11 bankruptcy late Friday, saying
it wants to continue service in some form. Company President David
Johnson says the carrier plans to commence operations again
sometime in March. The airline says it will continue charter
service, but did not elaborate.
"The number of passengers using Great Plains exceed our
expectations," St. Clair County (MO) Board Chairman John Baricevic
said. "From a MidAmerica Airport perspective, they were a great
success."
But the airline apparently wasn't successful enough to stave off
creditors. That's bad news for St. Clair County, which is heavily
invested in Great Plains. The county loaned the airline $500,000
interest-free for aircraft leases, as well as $250,000 for parts
and a guarantee to purchase $100,000 worth of tickets. The county
also agreed to participate in a $500,000 ad campaign.
Still, none of that was
enough to kick-start the airline into profitability. In spite of
the Chapter 11 filing, authorities in St Clair County say the
relationship should continue. "The debt that they're suffering with
right now is what they had before we started our relationship,"
said Airport Director Tim Cantwell. "We also knew that their
business plan was solid and they needed to just have more assets --
we helped them with their assets."
But at least one county executive wants his money back. Frank
Heiligenstein, a Democrat, said it's time to cut the county's
losses.
"I don't think we need to commit any more funds to this project
if they are in this situation," he said. "I'm sure that their
finances are shallow, and I just don't have much confidence in
something being able to emerge from this Chapter 11 here."
Earlier this month, the airline gave an indication of trouble to
come when it reduced its flight schedule between MidAmerica, Tulsa
(OK) and Washington (DC) because of maintenance issues on its
Dornier 328 jets. In a recent letter to shareholders, Johnson said
the company is in the process of turning those two Fairchild
aircraft over to its bank.
"It's not their fault; it's Pratt and Whitney's," St. Clair
County Board Chairman John Baricevic said. "The regular maintenance
that's supposed to be provided by the manufacturer isn't taking
place."