AirTrucker

This raid has nothing to do with Sun Country. But my question is could this affect Sun Country in any way? I would think not but you never know with business in this day in age, look at the financial market.

Wednesday: Feds raid Petters' Minnetonka HQ

PaintCan

If the search warrant is under seal, then how does the company spokesman really know what the FBI is looking for? The company spokesman is only the mouth piece of the company and my not really know what is about to happen.

My guess is they are not saying anything and watch the stock sell off Monday morning that Petters owns.

AirTrucker

You have a good point, its slow at work so today so I might have to watch there stock!

SmoothOnTop

AirportBusiness.com » Article » Sun Country wins Biden bid

As the 2008 presidential election kicks into high gear, a Minnesota airline is playing a high-profile role in one of the campaigns. Delaware Sen. Joe Biden, the Democratic vice-presidential nominee, is flying on a Sun Country Boeing 737 for all his campaigning. Biden will be using the plane through Election Day.


- Maybe their inflight magazine has articles about President F. Roosevelt's October 1929 television debut , clandestine shotgun sales, paraphrasing for professionals, taxing for patriots and how to rule the world by controlling everyone's energy...

AirbusA320

They should raided the offices of Freddie & Fannie years ago. Have you noticed only little operations ever get raided? Ever hear of UAL or AA getting raided? Small Part 135 operations get raided and shut down. It proves size does matter!

flyguy1

It is really affecting Sun Country! All employees are taking a 50% paycut. The only reason they have survived this long is Tom Petters has sunk millions into them this year alone.

AAflyer

They were asked to take a 50% cut till the new year. Did they agree yet? This is not a slam on Sun Country employees, but it is pretty pathetic.

CEO says the cost of gas too expensive, employees subsidize the cost of gas with 50% pay cuts (Outstanding business model). CEO says we will be profitable shortly......

AA

flx757

Interesting. But not completely correct. The employees were asked to defer 50% of their pay (with certain exceptions) until the end of the year, provided additional funding is not found. CEO is not taking any salary during this period.

This is to sever ties to the parent company and not be dependent upon it for additional funding/capital.

The last 2 months WERE profitable. Unless the flying public is scared away by all the misinformation that is rampant, he anticipates a profitable 1st qtr. Also, they are moving away from scheduled service and more into ACMI and charter flying.

The CEO is attempting to find any and all ways possible to generate enough revenue, independent of Petters, to keep the company alive in the short term. Most employees are behind this effort.

If people are going to talk, they need accurate information.

Again. More misinformation. Sun Country Airlines was not "raided". Petters Co. was. One facet of Petters Worldwide, which has as part of its holdings, Sun Country...along with other companies. The only connection is that Tom Petters holds all the voting shares of Sun Country and was providing financial support...which now Sun Country is trying to become financially independent of Petters Aviation.

FWIW, Petters Co. is hardly a "little operation". They were a major player, but evidently, a major player in a highly illegal fashion.

There is no stock to sell. It is not publicly traded and is 100% privately held by Tom Petters.

AAflyer

Well thank you Flex,

That is exactly what these boards are for. Forgive me if I sounded like
I knew it all. I appreciate the updated information. We will see if the deferral of "salary" is given back.

As for the CEO not taking a salary for the remainder of the year. Good for him. However what was his total salary this including bonuses.

Let us hope Sun Country comes through this, let us hope the employees are made whole, and lastly let us hope the CEO does not receive some "large" bonus next year for "saving" the airline.

Once again, thanks for your corrections.

AA

southbound

Tuesday, September 30, 2008
<DIV class=entry id=entry-56345587><DIV class=entry-content><DIV class=inside-copy>Minnesota-based leisure carrier Sun Country Airlines is the latest U.S. carrier to run into financial turbulence. Describing the carrier as "low on cash as it enters one of the slowest travel seasons of the year," the Minneapolis Star Tribune writes Sun Country "told workers on Monday it would cut their pay in half beginning next week and reimburse them in 2009." However, two of the carrier's biggest unions –- those representing pilots and flight attendants -– have yet to sign off on that plan. The company floated the idea to union leaders on Friday before announcing the move Monday, according to the Star Tribune.
"We disagree with the unilateral action taken by the company" in which the company went forward with announcing the pay deferral, attendants' union spokesman Joe Battaglia tells the Star Tribune. "We will use all available avenues to protect our membership." The pilots union declined to be interviewed by the Star Tribune, though a union official said in an e-mail to the paper that "we have made no commitments to management." Sun Country CEO Stan Gadek tells the Star Tribune he hopes to win the unions' support, but adds: "I intend to go forward with it regardless. … I've got to run a business here." For his part, Gadek says in a letter to workers that he will "work without pay until this crisis is resolved."
So, what landed Sun Country in its current predicament? The Star Tribune writes "Sun Country's move came as its embattled chairman and majority shareholder, Tom Petters, resigned Monday as chairman and CEO of Petters Group Worldwide as well as from roles in its affiliate companies, including the airline. Petters is the main target of a federal fraud investigation."

The St. Paul<EM>