MAIR to Sell Big Sky
12-20-2007, 07:02 PM
#1
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Joined APC: Sep 2007
Position: CRJ FO
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MAIR to Sell Big Sky
MAIR to end operations after selling Big Sky assets
Bloomberg News
Article Last Updated: 12/20/2007 03:09:37 PM CST
Minneapolis-based MAIR Holdings Inc., the parent of Big Sky Airlines, said it will cease operation after selling the commuter carrier's assets and distributing the proceeds to shareholders.
Chief Executive Officer Paul Foley announced the decision today on a conference call with analysts and investors. MAIR is targeting "fiscal 2008" for the distribution, Foley said, declining to be more specific.
Surging jet-fuel prices, weak demand and revenue, and bad weather forced MAIR to reverse an expansion of Big Sky flights to the eastern U.S. after just a month. The Billings, Mont.-based carrier, flying in the east for Delta Air Lines, lost about $1.3 million on the operation in November, Foley said.
"We are extremely disappointed by the fact that, despite our efforts, we no longer see a route to profitability in our eastern operations and are no longer willing to fund the cost of developing that market," Foley said.
Big Sky will sell seven aircraft and spare parts used for the Delta flights and valued at about $21.9 million, he said. There are 140 employees in that operation, and MAIR will have unspecified costs for the shutdown, he said. Foley said MAIR is in talks to transfer Big Sky's Montana operations to another carrier and will seek to sell its U.S. operating certificate.
Delta's Comair regional unit began replacing Big Sky service today between Boston and Bangor, Maine, said Anthony Black, a spokesman for Atlanta-based Delta. "At this point we have no plans to backfill" the other 14 routes, he said.
MAIR, which posted losses in eight of the previous nine quarters, sold its bankrupt Mesaba Airlines unit to Eagan-based Northwest Airlines Corp. earlier this year.
Bloomberg News
Article Last Updated: 12/20/2007 03:09:37 PM CST
Minneapolis-based MAIR Holdings Inc., the parent of Big Sky Airlines, said it will cease operation after selling the commuter carrier's assets and distributing the proceeds to shareholders.
Chief Executive Officer Paul Foley announced the decision today on a conference call with analysts and investors. MAIR is targeting "fiscal 2008" for the distribution, Foley said, declining to be more specific.
Surging jet-fuel prices, weak demand and revenue, and bad weather forced MAIR to reverse an expansion of Big Sky flights to the eastern U.S. after just a month. The Billings, Mont.-based carrier, flying in the east for Delta Air Lines, lost about $1.3 million on the operation in November, Foley said.
"We are extremely disappointed by the fact that, despite our efforts, we no longer see a route to profitability in our eastern operations and are no longer willing to fund the cost of developing that market," Foley said.
Big Sky will sell seven aircraft and spare parts used for the Delta flights and valued at about $21.9 million, he said. There are 140 employees in that operation, and MAIR will have unspecified costs for the shutdown, he said. Foley said MAIR is in talks to transfer Big Sky's Montana operations to another carrier and will seek to sell its U.S. operating certificate.
Delta's Comair regional unit began replacing Big Sky service today between Boston and Bangor, Maine, said Anthony Black, a spokesman for Atlanta-based Delta. "At this point we have no plans to backfill" the other 14 routes, he said.
MAIR, which posted losses in eight of the previous nine quarters, sold its bankrupt Mesaba Airlines unit to Eagan-based Northwest Airlines Corp. earlier this year.
12-21-2007, 06:44 AM
#5
Gets Weekends Off
Joined APC: Mar 2007
Position: SAAB
Posts: 300
Fear not evryone Paul Foley will have a golden parachute. This will no be a tough christmas for him he will still be able to support his family without foodstamps or help from the state. No that's only reserved for the hard working pilots out on the line. Best of luck to you big sky folks. Sorry he had to come in and screw up your airline.
12-21-2007, 08:26 AM
#6
Gets Weekends Off
Joined APC: Apr 2007
Position: "I love the smell of Napalm in the Morning."
Posts: 288
No big surprises here. BigSky has been losing money from day one when MAIR bought them to whipsaw against Mesaba. As for Paul Foley, maybe he'll have to sell his estate in Edina and go back to White Plains... there'll be big cut backs in the Foley house this christmas (note the sarcasm). But then, by my name you probably already know how I feel about him...
-IHM
-IHM
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