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Chicago Express?
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ALSF 2
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Currently the entire workforce (except for a shell of the General Office) is on furlough. All aircraft that were leased have been return to the lessor. The individual that bought the company (Ed Okum) is working with an aviation counsulting group and the current company management...whats left of it anyway, to return to service.
Although, on the company infoline this past friday, it was implied that "there has been a development with ATA." So who knows! the drama is far from over. We will learn more on Monday.
Good Luck to all the fine people at this wonderful company, by far the best team I have ever had the priledge to work with.
Cheers!
Although, on the company infoline this past friday, it was implied that "there has been a development with ATA." So who knows! the drama is far from over. We will learn more on Monday.
Good Luck to all the fine people at this wonderful company, by far the best team I have ever had the priledge to work with.
Cheers!
ATA probably noticed what a mistake it was getting rid of Chicago Express when it saw it's load numbers decline after the shut down. Now they are probably wanting to get some sort of deal back with the current owner of Chicago Express. I really hope it works out for you guys over there... you are a great group of pilots!
Roger Murdoch
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Ralph Wiggums
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Chicago Express to return to the air
CSC wins bidding; market niche stressed
By Mark Skertic
Tribune staff reporter
Published April 19, 2005
Chicago Express Airlines will be reborn as a regional carrier serving the Midwest and as a cargo hauler under the plans of the Chicago-based investment group that is the latest winning bidder for the airline.
CSC Investment Group said it learned Friday that its $3.2 million bid is the highest for the airline after Okun Enterprises of Indianapolis dropped its offer of between $3 million and $4 million last week.
An attorney for Okun declined to comment Monday on why the offer was withdrawn. The company is primarily known for its real estate investments.
Chicago Express was a regional airline flying into Midway Airport and Indianapolis from cities such as Toledo, Ohio, and Grand Rapids, Mich. Its parent, Indianapolis-based ATA Holdings Corp., sought bankruptcy protection in October and is selling Chicago Express to raise cash.
CSC Investment's bid is subject to approval of the U.S. Bankruptcy Court in Indianapolis. Additionally, federal aviation regulators will determine if the airline's certification allowing it to fly will transfer to the new owners.
Chicago Express, which ceased operation last month, was a profitable enterprise with growth potential, said Ed Halley, one of the principals of CSC Investment Group.
The airline industry has been rocked by financial woes in recent years, with some major carriers operating under bankruptcy protection and many others recording multimillion-dollar losses.
"If you asked me would we want to invest in a major carrier, buy a major carrier, the answer would be no," Halley said. "But when we looked at Chicago Express, we felt there was money to be made there."
Okun's offer had included an additional $2.44 million for two Saab 240 aircraft. CSC Investment's bid will give it the aircraft as part of its single bid of $3.2 million, Halley said.
He said the airline's history has shown there is a market from small and medium-size cities that need service into Midway.
"If you've got a niche in the marketplace and you're making money, why not stick with that niche," Halley said.
CSC Investment's business plan calls for Chicago Express to pursue a code share with another carrier serving Midway, so passengers could book a connection on a different airline through Chicago and deal with a single carrier.
"But where we believe the real money is going to come from ... is cargo," Halley said. "There is freight on the dock and it is in need of charter cargo flights."
And because cargo operators can charge upfront, the business could avoid the cash flow problems many enterprises have when they're waiting for payment to arrive, he said.
A former employee of United Airlines and Republic Airlines, Halley was with Flagship Express, an all-cargo carrier that went out of business in the early '90s.
Plans call for keeping the Chicago Express name.
"The problems weren't Chicago Express', they were just wrapped up in the problems of the bankruptcy," Halley said. "Their safety record is impeccable. They have no major fines, no major problems.
"My feeling is why would you change a brand name that's well respected? You don't."
CSC wins bidding; market niche stressed
By Mark Skertic
Tribune staff reporter
Published April 19, 2005
Chicago Express Airlines will be reborn as a regional carrier serving the Midwest and as a cargo hauler under the plans of the Chicago-based investment group that is the latest winning bidder for the airline.
CSC Investment Group said it learned Friday that its $3.2 million bid is the highest for the airline after Okun Enterprises of Indianapolis dropped its offer of between $3 million and $4 million last week.
An attorney for Okun declined to comment Monday on why the offer was withdrawn. The company is primarily known for its real estate investments.
Chicago Express was a regional airline flying into Midway Airport and Indianapolis from cities such as Toledo, Ohio, and Grand Rapids, Mich. Its parent, Indianapolis-based ATA Holdings Corp., sought bankruptcy protection in October and is selling Chicago Express to raise cash.
CSC Investment's bid is subject to approval of the U.S. Bankruptcy Court in Indianapolis. Additionally, federal aviation regulators will determine if the airline's certification allowing it to fly will transfer to the new owners.
Chicago Express, which ceased operation last month, was a profitable enterprise with growth potential, said Ed Halley, one of the principals of CSC Investment Group.
The airline industry has been rocked by financial woes in recent years, with some major carriers operating under bankruptcy protection and many others recording multimillion-dollar losses.
"If you asked me would we want to invest in a major carrier, buy a major carrier, the answer would be no," Halley said. "But when we looked at Chicago Express, we felt there was money to be made there."
Okun's offer had included an additional $2.44 million for two Saab 240 aircraft. CSC Investment's bid will give it the aircraft as part of its single bid of $3.2 million, Halley said.
He said the airline's history has shown there is a market from small and medium-size cities that need service into Midway.
"If you've got a niche in the marketplace and you're making money, why not stick with that niche," Halley said.
CSC Investment's business plan calls for Chicago Express to pursue a code share with another carrier serving Midway, so passengers could book a connection on a different airline through Chicago and deal with a single carrier.
"But where we believe the real money is going to come from ... is cargo," Halley said. "There is freight on the dock and it is in need of charter cargo flights."
And because cargo operators can charge upfront, the business could avoid the cash flow problems many enterprises have when they're waiting for payment to arrive, he said.
A former employee of United Airlines and Republic Airlines, Halley was with Flagship Express, an all-cargo carrier that went out of business in the early '90s.
Plans call for keeping the Chicago Express name.
"The problems weren't Chicago Express', they were just wrapped up in the problems of the bankruptcy," Halley said. "Their safety record is impeccable. They have no major fines, no major problems.
"My feeling is why would you change a brand name that's well respected? You don't."
English
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 3,374
Bad news for Chicago Express....
Local investor pulls out of deal with ATA
By Ted Evanoff and Will Higgins
[email protected]
Indianapolis real estate investor Okun Enterprises this morning said it has canceled plans to buy Chicago Express from bankrupt Indianapolis carrier ATA Airlines.
The investor had planned to buy the 600-employee Chicago-based commuter airline and move it to Indianapolis. ATA shut it down March 28 to cut costs.
In a press release, Okun Enterprises said: "The cessation of service created concerns affecting all aspects of the purchase -- **CENSORED** government agency approvals, re-certification, retention of key employees, assets **CENSORED**-- all of which were just too difficult for us to overcome.''
Edward Okun, an Indianapolis developer and syndicator of commercial real estate, said progress stalled when he learned the Federal Aviation Administration and the U.S. Department of Transportation decided that following the resignation Thursday of Chicago Express’ chief of maintenance, the airline’s flight certificate, its federal permission to fly, would be revoked.
“That certificate was the major asset we were buying,” Okun said.
Re-certification, Okun said, could take two years.
“I’m not in a position to buy this thing and have it grounded for two years,” Okun said Tuesday. “Our target was to get this thing back in the air by Aug. 1.”
Indianapolis-based ATA had bought Chicago Express in 1999 for $1.9 million to feed Midwest passengers to ATA Airlines' hub at Chicago Midway. Okun bid $3 million to $4 million for the carrier and also agreed to pay $2.44 million to ATA for two Saab 340 turboprop aircraft.
Local investor pulls out of deal with ATA
By Ted Evanoff and Will Higgins
[email protected]
Indianapolis real estate investor Okun Enterprises this morning said it has canceled plans to buy Chicago Express from bankrupt Indianapolis carrier ATA Airlines.
The investor had planned to buy the 600-employee Chicago-based commuter airline and move it to Indianapolis. ATA shut it down March 28 to cut costs.
In a press release, Okun Enterprises said: "The cessation of service created concerns affecting all aspects of the purchase -- **CENSORED** government agency approvals, re-certification, retention of key employees, assets **CENSORED**-- all of which were just too difficult for us to overcome.''
Edward Okun, an Indianapolis developer and syndicator of commercial real estate, said progress stalled when he learned the Federal Aviation Administration and the U.S. Department of Transportation decided that following the resignation Thursday of Chicago Express’ chief of maintenance, the airline’s flight certificate, its federal permission to fly, would be revoked.
“That certificate was the major asset we were buying,” Okun said.
Re-certification, Okun said, could take two years.
“I’m not in a position to buy this thing and have it grounded for two years,” Okun said Tuesday. “Our target was to get this thing back in the air by Aug. 1.”
Indianapolis-based ATA had bought Chicago Express in 1999 for $1.9 million to feed Midwest passengers to ATA Airlines' hub at Chicago Midway. Okun bid $3 million to $4 million for the carrier and also agreed to pay $2.44 million to ATA for two Saab 340 turboprop aircraft.
capt. megadeth
Metal Momma!
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Vdub Pilot
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elcapitan
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- Mar 9, 2004
- Posts
- 43
English
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 3,374
elcapitan
Active member
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- Posts
- 43
1) Ed Okun could have purchased the airline when it was operating; as could any of the potential bidders.
2) Ed Okun could have done a due diligence before the sale instead of sending his cronies (consultants) in after the auction and then waiting a whole month before the sale was completed.
3) Ed Okun could have made an offer to keep key employees.
4) What does he expect when nothing was done or said ( just silence ).
5) I am sure people would have stayed if he had moved quickly.
6) He has no one to blame other than himself.
7) He should learn to control his swearing.
2) Ed Okun could have done a due diligence before the sale instead of sending his cronies (consultants) in after the auction and then waiting a whole month before the sale was completed.
3) Ed Okun could have made an offer to keep key employees.
4) What does he expect when nothing was done or said ( just silence ).
5) I am sure people would have stayed if he had moved quickly.
6) He has no one to blame other than himself.
7) He should learn to control his swearing.
English said:
elcapitan
Active member
- Joined
- Mar 9, 2004
- Posts
- 43
The chief inspector and the director of maintenance did not leave. The airline could be recertified with the current staff. Ed @#$# ..censored..Okun just backed out. Thank you for wasting three weeks of valuable Chicago Express time...Just more rhetoric and BS from Okun.
Hopefully, CSC will be able to move on the sale and ATA will not try to destroy C8 anymore.
cceeyyyaaa....
http://www.indystar.com/apps/pbcs.dll/article?
AID=/20050420/BUSINESS/504200393&SearchID=73205622265041
April 20, 2005
Okun backs out; Chicago Express talks begin anew
By Ted Evanoff
ted.evanoff@...
ATA Holdings Corp. opened discussions with a potential new buyer for
Chicago Express after Indianapolis real estate investor Okun
Enterprises dropped plans to buy the commuter airline and move it to
Indianapolis.
Officials of Indianapolis-based ATA said Tuesday afternoon no final
deal had been reached with CSC Investment, whose bid in the Chicago
Express bankruptcy auction March 30 was second-highest after Okun's.
Okun Enterprises said the deal collapsed out of fear federal
regulators would push their review out as long as two years. The
shut-down airline would have remained grounded for that period while
it paid executives working on the review process.
"I'm not in a position to buy this thing and have it grounded for
two years," said Edward Okun, head of the investment firm, on
Tuesday. "Our target was to get this thing back in the air by Aug.
1."
However, a Federal Aviation Administration spokesman said Okun
Enterprises had not filed the necessary paperwork, including its
business plan.
As a result, the review process had not begun, and it was not clear
how long it would take to approve a change of control, said FAA
spokesman Tony Molinaro.
"We were waiting for written transportation plans," said
Molinaro. "They pulled out before they gave us one."
The 12-year-old Chicago-based feeder line had ferried Midwest
passengers to ATA Airlines' jet hub at Chicago Midway until bankrupt
ATA Holdings shut it down March 28 to cut costs.
Okun Enterprises had indicated it would bring the 600-employee
carrier to Indianapolis and resume in-state flights from the city to
Evansville, South Bend and Fort Wayne. Now it appears those plans
have fizzled.
While ATA and CSC executives were not available for comment Tuesday,
the Chicago Tribune reported the Chicago investment group intends to
operate the airline as a cargo and passenger shuttle focused on
Midway.
Okun Enterprises bid $3 million to $4 million, plus $2.44 million
for two Saab 340 aircraft owned by ATA. The cash would have been
earmarked for ATA creditors.
Okun told The Indianapolis Star the flight certificates Chicago
Express needed to resume operations would be revoked by the FAA
because the airline's maintenance chief had quit. Getting those
papers restored would take up to two years.
ATA confirmed the departure but also said the position had been
filled by a former employee who earlier worked in the same position.
"We in fact have someone working in that position," said Roxanne
Butler, ATA investor relations specialist.
Call Star reporter Ted Evanoff at (317) 444-6019
Hopefully, CSC will be able to move on the sale and ATA will not try to destroy C8 anymore.
cceeyyyaaa....
http://www.indystar.com/apps/pbcs.dll/article?
AID=/20050420/BUSINESS/504200393&SearchID=73205622265041
April 20, 2005
Okun backs out; Chicago Express talks begin anew
By Ted Evanoff
ted.evanoff@...
ATA Holdings Corp. opened discussions with a potential new buyer for
Chicago Express after Indianapolis real estate investor Okun
Enterprises dropped plans to buy the commuter airline and move it to
Indianapolis.
Officials of Indianapolis-based ATA said Tuesday afternoon no final
deal had been reached with CSC Investment, whose bid in the Chicago
Express bankruptcy auction March 30 was second-highest after Okun's.
Okun Enterprises said the deal collapsed out of fear federal
regulators would push their review out as long as two years. The
shut-down airline would have remained grounded for that period while
it paid executives working on the review process.
"I'm not in a position to buy this thing and have it grounded for
two years," said Edward Okun, head of the investment firm, on
Tuesday. "Our target was to get this thing back in the air by Aug.
1."
However, a Federal Aviation Administration spokesman said Okun
Enterprises had not filed the necessary paperwork, including its
business plan.
As a result, the review process had not begun, and it was not clear
how long it would take to approve a change of control, said FAA
spokesman Tony Molinaro.
"We were waiting for written transportation plans," said
Molinaro. "They pulled out before they gave us one."
The 12-year-old Chicago-based feeder line had ferried Midwest
passengers to ATA Airlines' jet hub at Chicago Midway until bankrupt
ATA Holdings shut it down March 28 to cut costs.
Okun Enterprises had indicated it would bring the 600-employee
carrier to Indianapolis and resume in-state flights from the city to
Evansville, South Bend and Fort Wayne. Now it appears those plans
have fizzled.
While ATA and CSC executives were not available for comment Tuesday,
the Chicago Tribune reported the Chicago investment group intends to
operate the airline as a cargo and passenger shuttle focused on
Midway.
Okun Enterprises bid $3 million to $4 million, plus $2.44 million
for two Saab 340 aircraft owned by ATA. The cash would have been
earmarked for ATA creditors.
Okun told The Indianapolis Star the flight certificates Chicago
Express needed to resume operations would be revoked by the FAA
because the airline's maintenance chief had quit. Getting those
papers restored would take up to two years.
ATA confirmed the departure but also said the position had been
filled by a former employee who earlier worked in the same position.
"We in fact have someone working in that position," said Roxanne
Butler, ATA investor relations specialist.
Call Star reporter Ted Evanoff at (317) 444-6019
elcapitan
Active member
- Joined
- Mar 9, 2004
- Posts
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[url="http://cmsimg.indystar.com/apps/pbcsi.dll/bilde?Site=BG&Date=20050420&Category=BUSINESS&ArtNo=504200393&Ref=AR&Profile=1003&MaxW=250&Q=80&Border=0"]http://cmsimg.indystar.com/apps/pbcsi.dll/bilde?Site=BG&Date=20050420&Category=BUSINESS&ArtNo=504200393&Ref=AR&Profile=1003&MaxW=250&Q=80&Border=0[/url]
Wonder what the new paint job will look like?
Wonder what the new paint job will look like?
elcapitan
Active member
- Joined
- Mar 9, 2004
- Posts
- 43
[font=Arial,Helvetica]Developer backs off deal for airline[/font]
CSC emerges as new suitor for Chicago Express.
By JOHN DOBBERSTEIN
Tribune Staff Writer
The proposed buyer for Chicago Express pulled its offer from the table Tuesday, but next in line is a Chicago-based investment group that plans to reopen the airline for passenger and cargo service.
CSC Investment Group's offer of $3.2 million has reportedly emerged as the leading bid after Okun Enterprises Inc. withdrew.
CSC believes Chicago Express served a profitable niche in the Midwestern aviation market, but was caught up in the aftermath of ATA's bankruptcy filing in October.
ATA shut down Chicago Express on March 28 to save money, ending service between Chicago's Midway Airport and several medium-sized cities like South Bend, Grand Rapids and Dayton, Ohio.
ATA has been trying to sell the airline to raise cash.
"If you asked me would we want to invest in a major carrier, buy a major carrier, the answer would be no. But when we looked at Chicago Express, we felt there was money to be made there," Ed Halley, a principal in CSC, told the Chicago Tribune in a Tuesday story.
CSC's offer still requires the approval of U.S. Bankruptcy Judge Basil Lorch III in Indianapolis.
During a March 31 auction, Okun Enterprises -- an Indianapolis real estate investment and management firm -- offered to pay between $3 million and $4 million for Chicago Express, and $2.4 million for two SAAB turboprop aircraft.
The deal was contingent on the approval of the Federal Aviation Administration and U.S. Department of Transportation.
Edward Okun, president of Okun Enterprises, said Tuesday that he changed his mind because the FAA and the Department of Transportation planned to revoke the commuter line's flight certificate after its chief of maintenance resigned last week.
ATA agreed to pay $214,000 in bonuses to keep five key employees on board and, presumably, keep Chicago Express' federal operating certificate alive.
Okun said recertification under the present circumstances could take two years.
"That certificate was the major asset we were buying," Okun told the Indianapolis Star on Tuesday. "I'm not in a position to buy this thing and have it grounded for two years. Our target was to get this thing back in the air by Aug. 1."
But FAA spokesman Tony Molinaro said Chicago Express' flight certificate hadn't been revoked yet.
"It never got to that stage. ... Nothing like that was said at all," Molinaro said. "We had some initial discussions, and the flight standards district office had discussions, and we were waiting for their written transition plan to come to us."
Molinaro did say an airline that ceases operations must go through strict inspections.
"You have to look at everything," he said. "If it's simply a change of ownership and everything else is the same, the process is simpler. If there's a change of ownership and other changes with (employees) and flights, the process will be longer. We have to determine everything is still safe."
Molinaro said he couldn't comment on whether CSC can successfully reopen Chicago Express. "We just start the process again," he said. "We just want to ensure everything is safe for the travelers."
Halley said the airline's history has shown there is a market from small and medium-size cities that need service to Midway Airport.
"But where we believe the real money is going to come from ... is cargo," Halley told the Chicago Tribune. "There is freight on the dock and it is in need of charter cargo flights."
Staff writer John Dobberstein:
[email protected]
(574) 235-6187
CSC emerges as new suitor for Chicago Express.
By JOHN DOBBERSTEIN
Tribune Staff Writer
The proposed buyer for Chicago Express pulled its offer from the table Tuesday, but next in line is a Chicago-based investment group that plans to reopen the airline for passenger and cargo service.
CSC Investment Group's offer of $3.2 million has reportedly emerged as the leading bid after Okun Enterprises Inc. withdrew.
CSC believes Chicago Express served a profitable niche in the Midwestern aviation market, but was caught up in the aftermath of ATA's bankruptcy filing in October.
ATA shut down Chicago Express on March 28 to save money, ending service between Chicago's Midway Airport and several medium-sized cities like South Bend, Grand Rapids and Dayton, Ohio.
ATA has been trying to sell the airline to raise cash.
"If you asked me would we want to invest in a major carrier, buy a major carrier, the answer would be no. But when we looked at Chicago Express, we felt there was money to be made there," Ed Halley, a principal in CSC, told the Chicago Tribune in a Tuesday story.
CSC's offer still requires the approval of U.S. Bankruptcy Judge Basil Lorch III in Indianapolis.
During a March 31 auction, Okun Enterprises -- an Indianapolis real estate investment and management firm -- offered to pay between $3 million and $4 million for Chicago Express, and $2.4 million for two SAAB turboprop aircraft.
The deal was contingent on the approval of the Federal Aviation Administration and U.S. Department of Transportation.
Edward Okun, president of Okun Enterprises, said Tuesday that he changed his mind because the FAA and the Department of Transportation planned to revoke the commuter line's flight certificate after its chief of maintenance resigned last week.
ATA agreed to pay $214,000 in bonuses to keep five key employees on board and, presumably, keep Chicago Express' federal operating certificate alive.
Okun said recertification under the present circumstances could take two years.
"That certificate was the major asset we were buying," Okun told the Indianapolis Star on Tuesday. "I'm not in a position to buy this thing and have it grounded for two years. Our target was to get this thing back in the air by Aug. 1."
But FAA spokesman Tony Molinaro said Chicago Express' flight certificate hadn't been revoked yet.
"It never got to that stage. ... Nothing like that was said at all," Molinaro said. "We had some initial discussions, and the flight standards district office had discussions, and we were waiting for their written transition plan to come to us."
Molinaro did say an airline that ceases operations must go through strict inspections.
"You have to look at everything," he said. "If it's simply a change of ownership and everything else is the same, the process is simpler. If there's a change of ownership and other changes with (employees) and flights, the process will be longer. We have to determine everything is still safe."
Molinaro said he couldn't comment on whether CSC can successfully reopen Chicago Express. "We just start the process again," he said. "We just want to ensure everything is safe for the travelers."
Halley said the airline's history has shown there is a market from small and medium-size cities that need service to Midway Airport.
"But where we believe the real money is going to come from ... is cargo," Halley told the Chicago Tribune. "There is freight on the dock and it is in need of charter cargo flights."
Staff writer John Dobberstein:
[email protected]
(574) 235-6187
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