craignye
Member
- Joined
- Apr 18, 2007
- Posts
- 6
Champion Air to Cease Flight Operations May 31st
Monday March 31, 20 pm ET
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Champion Air announced today that it will cease flight operations May 31, 2008.
“This is a sad day for the entire Champion family,” said Champion President and CEO Lee Steele. “The men and women of this airline have poured themselves into providing safe, reliable and pleasing service to millions of customers over our 11 years in business. Unfortunately, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services. Those factors also have impeded our efforts to attract new capital and new investors. Accordingly, the management team and our board of directors have decided that the best course of action is to cease flying and to wind up our operations in a responsible, deliberate manner.”
Steele noted that the run-up in fuel prices strongly impacted Champion’s fleet of three-engine Boeing 727s and that both the overall economic slowdown and the tight credit markets had a strong, negative impact on the airline’s business prospects and its efforts to attract investors. Compounding the challenges facing the airline was a growing trend in the marketplace away from charter carriers for certain types of flying.
“Champion really has experienced a ‘perfect storm’ that has simultaneously affected our cost structure, our ability to generate revenue and our ability to restructure ourselves,” Steele said. “Any one of those factors would be difficult; collectively they are insurmountable…even with the tremendous employees we have and the best efforts of everyone involved.
“The people of this airline can take a very justifiable pride in what they have created,” Steele continued. “This situation is in no way a reflection of their talents, their commitment or their passion for our customers.”
Champion will fulfill all outstanding service commitments and will remain fully in compliance with all regulatory, operational and labor contract requirements. The company has adequate funds to continue operations and to settle all outstanding financial obligations.
The airline’s current 550 employees will continue to receive their pay and benefits through May 31. Notification of the impending shutdown as mandated by the Worker Adjustment and Retraining Notification (WARN) Act and any similar state and local regulations is underway.
Monday March 31, 20 pm ET
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Champion Air announced today that it will cease flight operations May 31, 2008.
“This is a sad day for the entire Champion family,” said Champion President and CEO Lee Steele. “The men and women of this airline have poured themselves into providing safe, reliable and pleasing service to millions of customers over our 11 years in business. Unfortunately, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services. Those factors also have impeded our efforts to attract new capital and new investors. Accordingly, the management team and our board of directors have decided that the best course of action is to cease flying and to wind up our operations in a responsible, deliberate manner.”
Steele noted that the run-up in fuel prices strongly impacted Champion’s fleet of three-engine Boeing 727s and that both the overall economic slowdown and the tight credit markets had a strong, negative impact on the airline’s business prospects and its efforts to attract investors. Compounding the challenges facing the airline was a growing trend in the marketplace away from charter carriers for certain types of flying.
“Champion really has experienced a ‘perfect storm’ that has simultaneously affected our cost structure, our ability to generate revenue and our ability to restructure ourselves,” Steele said. “Any one of those factors would be difficult; collectively they are insurmountable…even with the tremendous employees we have and the best efforts of everyone involved.
“The people of this airline can take a very justifiable pride in what they have created,” Steele continued. “This situation is in no way a reflection of their talents, their commitment or their passion for our customers.”
Champion will fulfill all outstanding service commitments and will remain fully in compliance with all regulatory, operational and labor contract requirements. The company has adequate funds to continue operations and to settle all outstanding financial obligations.
The airline’s current 550 employees will continue to receive their pay and benefits through May 31. Notification of the impending shutdown as mandated by the Worker Adjustment and Retraining Notification (WARN) Act and any similar state and local regulations is underway.
