Pacific Jet Van Nuys In Bankruptcy

[pa56pa]

50,000 bid pkgs

correct me if I'm wrong... but is one of the companies, JetFirst??? I can see them purchasing their own assets from a company run under someone else's name...

 

[HMR]

I'm surprised this thread hasn't been deleted and all of you put in the penalty box.

I imagine the owners will just set up shop under a new name and start all over again. I'm trying to remember... were the PJ owners the same guys who ran JetWest @ KVNY?

AA717driver- I know two of those "smokin' hot" FA's. They both quit ASAP. They've got stories that'll make your hair stand up.

 

[TransMach]

Pa56pa,


Yes. It's very common in bankruptcy, liquidation proceedings.

There are two basic types of bankruptcy. First is "reorganization" which is where United Airlines is. In reorganization, the debtor presents a plan to reorganize the company's operations, assets and business plan and return to profitability. During reorganization the court appointed trustee determines how much the debtor can repay to his creditors.

Second is "Liquidation". In liquidation the court liquidates the debtor's assets and then distributes the proceeds to the creditors. Everyting, every asset the debtor holds (rules are different for personal bankruptcy vs corporate) are sold through the court. Anyone, including the debtor, can bid on and purchase the assets of the debtor. Although when the debtor purchases an asset owned by the debtor it is usually done blind through another entity.

No suprise in Pacific Jet's case, however.

TransMach

 

[LAZYB]

TP needs to be flushed.

 

[English]

Basically the 50'000 bucks is to weed out the ones that aren't really serious. The package will include all that is avaliable (ie:aircraft.client lists,office furniture etc.) for purchase and under what conditions or stipulations.

You really think there are any clients left?

Even if there were, with that 30 days revocation clause, it's a joke.

 

[pa56pa]

I'm surprised this thread hasn't been deleted and all of you put in the penalty box.

I imagine the owners will just set up shop under a new name and start all over again. I'm trying to remember... were the PJ owners the same guys who ran JetWest @ KVNY?

AA717driver- I know two of those "smokin' hot" FA's. They both quit ASAP. They've got stories that'll make your hair stand up.

Yes.. used to be JetWest @ VNY... then TP bought it to start Pac Jet.... now, it's a so-called new company @ VNY ran by TP called "JETFIRST"

 

[Gulfstream 200]

I'm surprised this thread hasn't been deleted and all of you put in the penalty box.

I imagine the owners will just set up shop under a new name and start all over again. I'm trying to remember... were the PJ owners the same guys who ran JetWest @ KVNY?

AA717driver- I know two of those "smokin' hot" FA's. They both quit ASAP. They've got stories that'll make your hair stand up.

I agree.
I ran into a crew in LIRQ in a RAT A$$ G3. Nice folks, but that seemed like the definition of a $hit charter job.

 

[TransMach]

I'm wondering ... what are the expenses that run an aircraft mangement/charter company into bankruptcy? The mangement company doesn't own any airplanes, so there's no debt service there on secured paper. The management company can expand/contract it's staff to meet the flying demand. The management company makes a markup on outsourced maintenance, fuel, insurance and crew services it provides to it's airplane owners. It would have it's own business umbrella insurance, operating insurance, facility rent and staff employee overhead costs. I can see an aircraft management company continue to contract until it dissappears, but bankruptcy ... that means somebody's cheeting somebody by hiding behind the bankruptcy rules or they have cheeted the airplane owners by making promisses they can't keep or they have collected monies from the airplane owners and spent it without doing what they were suppose to do with it.

Just my slant on it. If you pay the airplane owners as you are suppose to, and charge them what you are suppose to, bankruptcy would seem a far fetched idea.

TransMach

 

[HMR]

Interesting post TransMach. I'm not an expert on business (that's why I sit in the front of the jet) but your argument makes sense.

A few other things to consider:

-PJ always seemed to be one of the busiest operators @ VNY.

-Their unwillingness to spend money on proper MX is well known.

-Pilots paid for their own training.

So... what exactly were the expenses that would lead to bankruptcy?

Also, remember the guys on here a few months back who were justifying paying for their training because PJ offered them a GIII job with 500TT? I wonder what the payments are on that training debt?

 

[GVJeff]

You really think there are any clients left?

Even if there were, with that 30 days revocation clause, it's a joke.

Just flew into KBED from LFPG. Heard a Pacific Jet Gulfstream coming over as well. Apparently they're still flying.