Tuesday, 7 October 2008

Another one bites the dust (Sun Country Airlines)

Sun Country Airlines declared itself insolvent and filed for bankruptcy yesterday. I’ve updated my FAQ on Airline Bankruptcies accordingly.

Sun Country is not well known outside Minnesota, but had exploited the opportunity provided by Northwest Airlines’ near-monopoly and consequent high fares at its Minneapolis/St. Paul (MSP) hub to offer a network of holiday charters and more recently some scheduled services (many of them seasonal, in winter only) between snowy Minnesota and the “Sun Country” of Florida, the southwestern USA, Mexico, and the Caribbean.

For now, Sun Country is still flying, and they are making the typical fraudulent claims that ticket-holders have “nothing to worry about” because if you paid for tickets recently with a credit card, you might eventually be able to get your money back (from the airline’s merchant back — who knows how solvent they are these days) if the airline shuts down — small comfort if no other seats are available on another airline, or only at twice the price, and you have to forfeit your deposit or full prepayment for a cruise or tour.

As I’ve said repeatedly, a bankruptcy filing is your final warning. Sun Country could be shut down abruptly by the bankruptcy court at any time, if the court comes to believe that liquidating its remaining assets would get its creditors more money than allowing the airline to continue to operate at a loss.

Link | Posted by Edward on Tuesday, 7 October 2008, 06:34 ( 6:34 AM)
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