Northwest getting rid of Champion Air?

[shark77]

According to a news article in the Duluth News Tribune:

http://209.85.165.104/search?q=cach...lateral+champion+air&hl=en&ct=clnk&cd=6&gl=us

"[Duluth] has successfully enlisted Minnesota Finance Commissioner Tom Hanson’s support for a plan that would leave the state with a chunk of equity in Northwest, after the airline’s anticipated successful emergence from Chapter 11 bankruptcy. These shares in the reorganized company would be given to the state in return for relinquishing financial claims against the airline that Minnesota now holds as collateral, including a $40 million financial note in Champion Air that still is in Northwest’s possession. Champion Air, based in the Twin Cities, operates a fleet of charter aircraft.

Assistant Finance Commissioner Peter Sausen said the state hopes to sell its equity position in the newly emerged Northwest for a sum sufficient to retire all outstanding debt related to the Duluth air base."

All of this is really interesting especially with the recent departure of Champion's CEO Steve Spellman, who is now with Sun Country.

Is this the last of Champion?

 

[Thedude]

Technically, NWA has not owned MG in about 3-4 yrs. They "sold" it to the 5 upper management types and it was a owner financed sell. Spellman was one of the owners. In reality NWA still runs MG but the "sell" was on paper only. Interesting to see if MG does get liquidates since it is/was a cash cow. Guess we will see once this NBA season is over, since the contract with the NBA was for 3 yrs extendable for 2 more.

 

[n5374f]

Here we go again !

Champion air has not done a good job in working with the union to get a contract, this is just another typical NW ploy to put pressure on the pilots who will end up of going on strike anyway. By the time Northwest liquidates Champion all that will be left are some worthless B727's, because at the rate the pilots are leaving Champion and the inability to find pilots willing to work there, no pilots will be left anyway

 

[KingNothing]

It's funny N53*** whatever was asked to resign from Champion. They are currently wrapping up the contract, and hiring 40-50 pilots this summer with alot of guys getting called back to NWA. Still doing a cost annalysis on 738's and 320's

 

[n5374f]

Reply

Your MEC speaks for you, Ask them if they think a contract is just around the corner. I think they will tell you a strike is just around the corner

 

[Thedude]

I Still doing a cost annalysis on 738's and 320's

They have been doing cost analysis since 2000, Think they would have come up with a number by now......don't buy the carrot and stick method they pull

 

[727C47]

hows tradewinds treating you dude?

 

[shark77]

In the end, it comes down to having little to no lease costs on their current fleet. Champion won't be liquidated IMO, because the assets are worth next to nothing. If they can continue to operate with relatively low employee and equipment costs (assuming their are parts for the 727 still), they will probably be able to offset their higher fuel costs.

In essence, it makes reasonable business sense, when you can afford to park your planes and only pick up trips that make you money. Instead of having to operate at a loss to offset high lease rates.

Obviously they can't operate like this forever, so hopefully for those that are stuck there, management has a plan. Although it appears they don't!

 

[727C47]

in the current hiring environment no one is stuck anywhere any more,God's grace.

 

[schafjet]

So, will Champion live or die? Seems like they have always been able to hang on and survive no matter what was going on. Now it seems like they are being tested again. Does anyone with inside knowledge know what is going on over there? What are the opinions of people in the know, will Champion pull out of this rough ride?