For those of you who know Voss, you know what I'm referring to. What's the deal with the tax problems, unpaid fees at DEN, etc? The paper today painted a very bad picture. Are things really that bleak or is it business at usual for Dougy Fresh? I don't remember it being that bad when I was there (as far as the newspaper articles). $384,000 in cash reserves with about $100,000 due in a month is not a good thing.
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Here's the story:
Great Lakes might appeal city tax bill
But troubled firm will pay $83,000 owed
By Greg Griffin
Denver Post Business Writer
Monday, October 14, 2002 - Financially struggling Great Lakes Aviation owes the city of Denver $83,000 in taxes, a bill the carrier says it plans to pay but may later challenge.
Until last week, the Cheyenne-based airline owed the city $175,000, but it made a payment of $92,000, said Bruce Moore, manager of tax investigation and compliance for Denver's Department of Revenue.
The carrier is still the city's largest delinquent payer of 2001 taxes on personal property, which includes non-real estate property such as tools, office equipment and aircraft.
Unless Great Lakes settles its bill by Friday as it has promised, the airline could face seizure of its planes and other property at Denver International Airport.
"Great Lakes is cooperating with us," Moore said. "Our objective is to obtain voluntary payment."
Doug Voss, Great Lakes' chief executive, said the company plans to pay the balance but may appeal it.
Great Lakes, which flies to 32 small cities in the West and Midwest from its Denver hub, has been on the verge of financial collapse for more than a year.
The airline owes $140 million in debt payments and other liabilities during the next year. Yet it has only $24 million in short-term assets, including just $387,000 in cash as of June 30.
Great Lakes' role as a United Express carrier ended in 2001, which caused its passenger traffic to plummet. Diminished demand and airfares since the Sept. 11 attacks also have taken a toll. The carrier lost $18.6 million last year, and its passenger revenue through June was down 43 percent from last year.
Its stock, delisted from the Nasdaq SmallCap Market last month, closed at 46 cents on the Over-the-Counter Bulletin Board on Friday.
Despite the problems, Voss insisted Friday that the carrier's financial position is improving and that it will fly through its current crisis.
During its second quarter ended June 30, Great Lakes earned a profit of $1.5 million, its first quarterly gain in several years.
A big reason Great Lakes has fended off bankruptcy is that it receives subsidies from the government for flying to small, underserved markets. In the second quarter, Great Lakes received $8.8 million, or 65 percent of its revenues, from the government.
Small carriers including Great Lakes have lobbied for higher subsidies after Sept. 11 and have received them. The government agreed last year to increase its essential-service budget subsidies for 2002 to more than $30 million from $19 million last year.
As for Great Lakes' tax bill with Denver, Voss said he doesn't understand how the city computes it.
"We're doing a review over how the amount of tax was determined, and we don't necessarily know that we are in agreement with how it's calculated," he said.
Moore said the state assessed Great Lakes' personal property in Denver at $9.8 million. The tax payment was originally due in April.
Great Lakes also owes DIA $104,000 in landing fees and other charges for October, but the airport won't take action to collect the money until the end of the month, DIA spokesman Chuck Cannon said.
Great Lakes might appeal city tax bill
But troubled firm will pay $83,000 owed
By Greg Griffin
Denver Post Business Writer
Monday, October 14, 2002 - Financially struggling Great Lakes Aviation owes the city of Denver $83,000 in taxes, a bill the carrier says it plans to pay but may later challenge.
Until last week, the Cheyenne-based airline owed the city $175,000, but it made a payment of $92,000, said Bruce Moore, manager of tax investigation and compliance for Denver's Department of Revenue.
The carrier is still the city's largest delinquent payer of 2001 taxes on personal property, which includes non-real estate property such as tools, office equipment and aircraft.
Unless Great Lakes settles its bill by Friday as it has promised, the airline could face seizure of its planes and other property at Denver International Airport.
"Great Lakes is cooperating with us," Moore said. "Our objective is to obtain voluntary payment."
Doug Voss, Great Lakes' chief executive, said the company plans to pay the balance but may appeal it.
Great Lakes, which flies to 32 small cities in the West and Midwest from its Denver hub, has been on the verge of financial collapse for more than a year.
The airline owes $140 million in debt payments and other liabilities during the next year. Yet it has only $24 million in short-term assets, including just $387,000 in cash as of June 30.
Great Lakes' role as a United Express carrier ended in 2001, which caused its passenger traffic to plummet. Diminished demand and airfares since the Sept. 11 attacks also have taken a toll. The carrier lost $18.6 million last year, and its passenger revenue through June was down 43 percent from last year.
Its stock, delisted from the Nasdaq SmallCap Market last month, closed at 46 cents on the Over-the-Counter Bulletin Board on Friday.
Despite the problems, Voss insisted Friday that the carrier's financial position is improving and that it will fly through its current crisis.
During its second quarter ended June 30, Great Lakes earned a profit of $1.5 million, its first quarterly gain in several years.
A big reason Great Lakes has fended off bankruptcy is that it receives subsidies from the government for flying to small, underserved markets. In the second quarter, Great Lakes received $8.8 million, or 65 percent of its revenues, from the government.
Small carriers including Great Lakes have lobbied for higher subsidies after Sept. 11 and have received them. The government agreed last year to increase its essential-service budget subsidies for 2002 to more than $30 million from $19 million last year.
As for Great Lakes' tax bill with Denver, Voss said he doesn't understand how the city computes it.
"We're doing a review over how the amount of tax was determined, and we don't necessarily know that we are in agreement with how it's calculated," he said.
Moore said the state assessed Great Lakes' personal property in Denver at $9.8 million. The tax payment was originally due in April.
Great Lakes also owes DIA $104,000 in landing fees and other charges for October, but the airport won't take action to collect the money until the end of the month, DIA spokesman Chuck Cannon said.
Snakum
How's your marmott?
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Based on what I hear ...
The only things scientifically proven to be able to survive nuclear winter are cockroaches ... and Great Lakes Aviation.
And I hope that's true 'cause there's a good chance I'll be heading to Denver in the next two years for other reasons (GF wants to be near family). And since Osama Bin Dirtbag screwed up my master plan to snag a Citation/Lear/Falcon charter job (which is all I've ever wanted to do) I'm thinking of trying Great Lakes when I get there to build the turbine multi-time.
Rev. Thich Minh Thong
"The Bad Monk"
The only things scientifically proven to be able to survive nuclear winter are cockroaches ... and Great Lakes Aviation.
And I hope that's true 'cause there's a good chance I'll be heading to Denver in the next two years for other reasons (GF wants to be near family). And since Osama Bin Dirtbag screwed up my master plan to snag a Citation/Lear/Falcon charter job (which is all I've ever wanted to do) I'm thinking of trying Great Lakes when I get there to build the turbine multi-time.
Rev. Thich Minh Thong
"The Bad Monk"
Wiskey Driver
Return of the Hub Raider
- Joined
- Aug 31, 2002
- Posts
- 1,308
Wiskey Driver
Return of the Hub Raider
- Joined
- Aug 31, 2002
- Posts
- 1,308
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