Sun Country

[The Goose]

Check out the link - Sun Country Airlines filed BK on the 7th. This is the same Sun Country American did check maintenance on their 737-800 fleet recently at TULE.

Of interest, they (Petters Group) also own Polaroid (name), has a passive share in Fingerhut, and a few other businesses according to the linked article.

Are we getting stiffed on the repair bill or will we have the opportunity to purchase Sun Country's assets (737s) in the BK proceedings?

http://online.wsj.com/article/SB122332716773909031.html

 

[WingNaPrayer]

I would think that aircraft maintenance would be a priority creditor. Additionally, I would hope that AA was smart enough to get a chunk of change up front.

Also, it isn't "sun country" that has interests in those other companies, it is sun country's new owner that bought them back in 07.

They filed BK and claim business as usual, but in a letter to labor, they told employees to prepare for either layoffs or possibly a total shut-down by December 1. If that happens, AA has to stand in line with all the other creditors.

This is what happens when some guy with too much money and little to no experience in the industry wakes up one day and decides to buy an airline. Sun Country was a wreck when he bought them and they have been going steadily downhill under his leadership ever since.

Sun Country made a further statement to the press regarding it's employee letter:

"Sun Country said that it issued that letter to comply with legal requirements, and that it has no plans to shut down or slash its work force. It noted that federal law requires airlines to give employees 60 days notice if they intend large-scale job cuts or ceasing operations."

 

[FWAAA]

I would be very surprised if AA extended credit to Sun Country; I doubt AA would release the airplane to them without being paid in full for repairs. So my guess is that AA gets paid.

 

[PRINCESS KIDAGAKASH]

I wonder if AA ever got paid for those ZOOOMM airlines 767 C-checks? ZOOM airlines is another bankrupt hasbeen. I also wonder how long Allegent airlines will be around?

 

[777 fixer]

I wonder if AA ever got paid for those ZOOOMM airlines 767 C-checks? ZOOM airlines is another bankrupt hasbeen. I also wonder how long Allegent airlines will be around?

Allegiant Airlines is actually doing rather well for itself.

 

[eolesen]

AA would be an unsecured creditor, so it's likely to just be a write-off. I'm assuming their 73's are leased or mortgaged. Even if owned, there are people with far larger accounts receivable ahead of AA.

SY was done one way or another, with WN moving into MSP...

 

[JAFA]

This is what happens when some guy with too much money and little to no experience in the industry wakes up one day and decides to buy an airline. Sun Country was a wreck when he bought them and they have been going steadily downhill under his leadership ever since.

I think their problems would have gotten worse with or without Tom. They have now gone now the primrose path not once, but twice under 3 different owners. Maybe one of these days someone will own the certificate who understands they are a niche charter airline and that is all. When they just did charters they were profitable, every time they try scheduled service they go under. The reality is that this is what happens when an alleged con artist buys you and uses his umbrella corp as his own personal alleged ponzi scheme.

 

[Runwaysticker]

Allegiant Airlines is actually doing rather well for itself.

A guy I konw quit AA and now works for Allegiant in MCO, he loves it and he gave up 8 years of AA time as a AMT...........................so roll the dice and see what comes of it.................