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Gulfstream International Auction 1/4  
User currently offlinecanyonblue17 From United States of America, joined Oct 2008, 440 posts, RR: 0
Posted (3 years 6 months 3 weeks 1 day 4 hours ago) and read 12602 times:

I was told by a local airport official and former airline employee that Gulfstream International Airline (operating as Continental Connection) which filed for bankruptcy recently, is being auctioned off tomorrow (1/4). Operating mostly in Florida and the Bahamas with Beechcraft 1900s and Embraer props, anyone had more news on this or what might become of this airline?

64 replies: All unread, showing first 25:
 
User currently offlineIAHFLYR From United States of America, joined Jun 2005, 4790 posts, RR: 22
Reply 1, posted (3 years 6 months 3 weeks 1 day 4 hours ago) and read 12544 times:

First I've heard this news. Thanks for the posting as I'll investigate before purchasing that ticket from TPA-EYW I was set to buy tomorrow.

Quoting canyonblue17 (Thread starter):
Operating mostly in Florida and the Bahamas with Beechcraft 1900s and Embraer props

IIRC, they only flew the E120's for a short period of time around 2004-2005ish!



Any views shared are strictly my own and do not a represent those of any former employer.
User currently offlineflyby519 From United States of America, joined exactly 7 years ago today! , 1124 posts, RR: 0
Reply 2, posted (3 years 6 months 3 weeks 1 day 3 hours ago) and read 12503 times:

Up for auction indeed. Try googling Lehman, Loehmann's, Ambac, Gulfstream: Bankruptcy.



Gulfstream Airlines Headed for Jan. 4 Auction
Whether airline owner Gulfstream International Group Inc. continues flying beyond the first week of January will depend on the outcome of a Jan. 4 auction for the parent of Gulfstream International Airlines Inc.

Yesterday, the bankruptcy judge in Fort Lauderdale, Florida, approved procedures whereby bids for the airline are due on Jan. 3, in advance of a Jan. 4 auction and a hearing on Jan. 5 to approve the sale.
Absent a buyer, Gulfstream will be in default under an agreement with aircraft owner Raytheon Aircraft Credit. Default would allow Raytheon to repossess the 21 aircraft it provides.

Gulfstream is working on an agreement to sell the airline to Chicago-based Victory Park Capital Advisors LLC, the provider of financing for the Chapter 11 case. Any deal to buy the airline must be acceptable to Waltham, Massachusetts-based Raytheon.

Gulfstream said it won't accept an offer to purchase only the operating certificate. If a buyer intends to run the business as an airline, it would presumably be required to confirm a Chapter 11 plan to avoid the need for seeking a new operating certificate from the Federal Aviation Administration.

A buyer is eligible to take advantage of an offer from Raytheon to sell the aircraft at a specified price. The price isn't being made public. Gulfstream said it doesn't have enough funding to continue operating in Chapter 11 absent a quick sale.
Gulfstream filed for Chapter 11 reorganization on Nov. 4 in Fort Lauderdale, where it is based.
Gulfstream had assets of $13.6 million and $26 million in total liabilities on the June 30 balance sheet. Revenue of $46.3 million for the first half of 2010 resulted in a $1.6 million operating loss and a $2.8 million net loss. Revenue in 2009 was $87.3 million.
On entering Chapter 11, Gulfstream had 23 turboprop aircraft seating 19 passengers each. The company at the outset had more than 150 daily flights from Florida, the Bahamas and Ohio. Gulfstream operates under code-sharing arrangements with Continental Airlines Inc., UAL Corp.'s United Airlines and Copa Airlines.
The case is In re Gulfstream International Group Inc., 10-44131, U.S. Bankruptcy Court, Southern District of Florida (Fort Lauderdale).



These postings or comments are not a company-sponsored source of communication.
User currently offlineFWAERJ From United States of America, joined Jun 2006, 3717 posts, RR: 2
Reply 3, posted (3 years 6 months 3 weeks 23 hours ago) and read 12157 times:

Yikes.

One thing I noticed is that Gulfstream flies EAS flights to BFD/DUJ/FKL/JHW/LWB/PKB for CO/UA from the CLE hub in addition to Bahamas-Florida and intra-Florida flights. I also read somewhere on a.net that 3M wanted to increase their CLE flying for CO by adding non-EAS cities as well. If Gulfstream shuts down, is it just another nail in the coffin for CLE as a hub?

Maybe 9L/XJ could start EAS SAAB service from the affected cities under the United Express brand to IAD.



I don't work for FWA, their tenants, or their ad agency. But I still love FWA.
User currently offlineCODCA09 From United States of America, joined Oct 2009, 155 posts, RR: 0
Reply 4, posted (3 years 6 months 3 weeks 22 hours ago) and read 12015 times:

Quoting FWAERJ (Reply 3):
Maybe 9L/XJ could start EAS SAAB service from the affected cities under the United Express brand to IAD.

Colgan did serve JHW/BFD and PKB from IAD as UA Express but lost them to Gulfstream. Maybe XJ could apply to serve all of these from DTW under the DL code.

On another note Gulfstream was planning to start an independent operation from PIT. They had that in the works for a while. MDT was supposed to be their first destination. I guess that's not likely to happen anytime soon.


User currently offlineridgid727 From United States of America, joined exactly 6 years ago today! , 1108 posts, RR: 0
Reply 5, posted (3 years 6 months 3 weeks 21 hours ago) and read 11979 times:

On Dec 15th, Gulfstream bid on the EAS cities in Montana, stating they would form a maintenance base in Billings.

User currently offlineLAXintl From United States of America, joined May 2000, 24808 posts, RR: 46
Reply 6, posted (3 years 6 months 3 weeks 21 hours ago) and read 11906 times:

Gulfstream has been touch and go for a while until finally succumbing to Ch11 in November.
They have a long list of debt to many parties (including the gov't)

I believe their situation has much to with the questionable economic viability of 19-seater ops these days. Small revenue base while corporate overhead cost equivalent to larger carriers.



From the desert to the sea, to all of Southern California
User currently offlineILUV767 From United States of America, joined May 2000, 3141 posts, RR: 8
Reply 7, posted (3 years 6 months 3 weeks 19 hours ago) and read 11762 times:

Gulfstream cant even survive with their pilots paying to work there...sheesh...Maybe Lakes will buy them!

User currently offlineberyllium From , joined Dec 1969, posts, RR:
Reply 8, posted (3 years 6 months 3 weeks 18 hours ago) and read 11672 times:

I remember that about a year ago I came across their financial results for year 2009, and started this thread:

FY2009 Results For Gulfstream International (3M) (by beryllium Apr 16 2010 in Civil Aviation)

Already back then their finances did not look that great at all...

Now that Continental is no longer calling the shots, the days of 3M as a Continental Connection carrier were probably numbered anyway. I doubt United would be interested in keeping 3M in its United Express network.
I think the only way for 3M to survive (under any ownership) is to get EAS flying anywhere they would be able to get it.


User currently offlineHiflyer From United States of America, joined Nov 2004, 2165 posts, RR: 3
Reply 9, posted (3 years 6 months 3 weeks 15 hours ago) and read 11520 times:

Delta sniffed this a few months ago and started putting more rj flyng into florida basing out of Miami. UA/CO needs a feed down there....wonder if there would be a last minute reprieve of the emb120's out of Skywest as a stop gap?

User currently offlinecanyonblue17 From United States of America, joined Oct 2008, 440 posts, RR: 0
Reply 10, posted (3 years 6 months 3 weeks 7 hours ago) and read 11277 times:

Anyone get an update on how the auction went today?

User currently offlineHiflyer From United States of America, joined Nov 2004, 2165 posts, RR: 3
Reply 11, posted (3 years 6 months 3 weeks 7 hours ago) and read 11199 times:

Quoting canyonblue17 (Reply 10):
Anyone get an update on how the auction went today?

Nothing from the FLL paper or Google search as of 1145 est.


User currently offlineflyinryan99 From United States of America, joined Feb 2001, 2000 posts, RR: 12
Reply 12, posted (3 years 6 months 3 weeks 7 hours ago) and read 11167 times:

This kind of reminds me of how Chicago Express/C8 went off into the sunset.

Ya know, this could be an opportunity for Charter Air Transport (based in Cleveland) to jump in and take over for the CLE routes. They have the ability to quickly pick up EMB 120s. The only problem would be getting them to codeshare with UA/CO. Also, what about Mesaba/Colgan ramping up Saabs in CLE? I would love to see them there.

I sure miss TOL-CLE now as all my travels are that direction and with DTW gone, would use them exclusively.


User currently offlinesmoot4208 From United States of America, joined Jan 2010, 1293 posts, RR: 12
Reply 13, posted (3 years 6 months 2 weeks 6 days 22 hours ago) and read 10755 times:

Anyone know how the auction went today?

User currently offlinecanyonblue17 From United States of America, joined Oct 2008, 440 posts, RR: 0
Reply 14, posted (3 years 6 months 2 weeks 6 days 19 hours ago) and read 10553 times:

Still no news anywhere online, but I did notice the airline is still selling tickets through Continental.com several months out.

User currently offlinepeanuts From Netherlands, joined Dec 2009, 1438 posts, RR: 4
Reply 15, posted (3 years 6 months 2 weeks 6 days 19 hours ago) and read 10516 times:

Quoting Hiflyer (Reply 9):
Delta sniffed this a few months ago and started putting more rj flyng into florida basing out of Miami. UA/CO needs a feed down there....wonder if there would be a last minute reprieve of the emb120's out of Skywest as a stop gap?

Delta's FL strategy is independent from what Gulfstream did or would do, I would think. They could certainly be "facilitating" a smoother exit for Gulfstream however.  

No restrooms on intra Florida flying with Gulfstream can be a royal you-know-what. I'll leave it at that. (not referring to myself btw. just as we all get older, some passengers have challenges we don't all want to be confronted with...)

[Edited 2011-01-04 20:45:08]


Question Conventional Wisdom. While not all commonly held beliefs are wrong…all should be questioned.
User currently offlineridgid727 From United States of America, joined exactly 6 years ago today! , 1108 posts, RR: 0
Reply 16, posted (3 years 6 months 2 weeks 6 days 19 hours ago) and read 10486 times:

While it doesn't mention the auction, apparently some lfights a CLE were cancelled, saying they were mechanical issues... here is the article

http://www.newsandsentinel.com/page/...cancel-local-flights.html?nav=5061


User currently offlinedsuairptman From United States of America, joined Jul 2003, 892 posts, RR: 0
Reply 17, posted (3 years 6 months 2 weeks 6 days 19 hours ago) and read 10467 times:

http://gulfstreamreorg.com/motions.php

The above site contians information pertaining to Gulfstream's case. It inidcates a hearing on the sale is slated for Jan. 5, 2011.



GEAUX SAINTS!
User currently offlineUAL747DEN From United States of America, joined Dec 2003, 2392 posts, RR: 11
Reply 18, posted (3 years 6 months 2 weeks 6 days 19 hours ago) and read 10450 times:

If no news is coming out I would imagine that is a good thing. It could mean there is a sale in the works, these things can take a long time to get sorted out and there would not be much news coming out of the negotiations.


/// UNITED AIRLINES
User currently offlineridgid727 From United States of America, joined exactly 6 years ago today! , 1108 posts, RR: 0
Reply 19, posted (3 years 6 months 2 weeks 6 days 12 hours ago) and read 10322 times:

Its interesting to note that on Dec 21st, Gulfstream had requsted an extension deadline for submitting EAS proposals for Kingman AZ, Prescott Az, Page AZ, and Show Low AZ.

The US Dept of Transportation granted that extension to January 6th.

Apparently Gulfstream had/has an interest in building a EAS network out west, similar to what ZK has done, especially since they presented proposals for the Montana Cities.

The Arizona extension can be found here.

http://www.regulations.gov/#!docketDetail;D=DOT-OST-1996-1899

***note typical it US Govt style, they list those cities as Indiana and not Arizona


User currently offlineJBo From Sweden, joined Jan 2005, 2312 posts, RR: 0
Reply 20, posted (3 years 6 months 2 weeks 6 days 10 hours ago) and read 10202 times:

Quoting ILUV767 (Reply 7):
Gulfstream cant even survive with their pilots paying to work there...sheesh...Maybe Lakes will buy them!

Great Lakes isn't in much better shape. Buying 3M would be certain doom.



I'd take the awe of understanding over the awe of ignorance any day.
User currently offlineUSXguy From United States of America, joined Jan 2006, 1010 posts, RR: 5
Reply 21, posted (3 years 6 months 2 weeks 6 days 6 hours ago) and read 9968 times:

Doesn't Raytheon pretty much own Great Lakes??


xx
User currently offlineILUV767 From United States of America, joined May 2000, 3141 posts, RR: 8
Reply 22, posted (3 years 6 months 2 weeks 6 days 6 hours ago) and read 9955 times:

Quoting USXguy (Reply 21):
Doesn't Raytheon pretty much own Great Lakes??

Unoficially. Lakes owes Raytheon a lot of money this year. Lakes has historically been financially healthy.


User currently offlineairportugal310 From Palau, joined Apr 2004, 3575 posts, RR: 2
Reply 23, posted (3 years 6 months 2 weeks 6 days 5 hours ago) and read 9820 times:

Quoting Hiflyer (Reply 9):
UA/CO needs a feed down there....

Cape Air is still down there if they are really in need...just a thought



I sell airplanes and airplane accessories
User currently offlineridgid727 From United States of America, joined exactly 6 years ago today! , 1108 posts, RR: 0
Reply 24, posted (3 years 6 months 2 weeks 5 days 23 hours ago) and read 9498 times:

anyone heard anything about the auction or status of Gulfstream?

As i was searching thru google. I came across this, stating that it is their new livery.

http://blog.seattlepi.com/airlinersgalleryphotos/archives/233618.asp


25 cbphoto : No, it is official, I do remember seeing it in a financial report a while back. I can't find the link right now, but the payment is due this year. I
26 hatbutton : It definitely is a lot of money. According to their 3rd quarter financial statements they only have just under $8 million in cash and about $9 millio
27 cbphoto : I knew I saw it somewhere, Thanks for that link! Yeah, it has been talked about a lot in the company about what might happen and all. I know their ha
28 Post contains links beryllium : On December 29 the unsecured creditors filed the following motion with the court: http://www.gulfstreamreorg.com/pdflib/260_44131.pdf It looks like bo
29 UPNYguy : Anybody sense a possible Cape Air expansion?
30 USXguy : how? there aren't many GOOD AIRWORTHY capable Cessna 402C's around. 9K has been constantly shopping for them, and the planes on the market don't meet
31 hatbutton : Beat me to it. This is exactly the problem. Even with airlines like Seaport, I don't think they could find 20 or so PC-12s fast enough to replace tho
32 bahadir : I was in MCO today and saw a Gulfstream B1900 parked by United gates.. I guess they are still operating..
33 Post contains links 71Zulu : Still flying, http://flightaware.com/live/fleet/GFT
34 cbphoto : They will continue to operate until they officially go into Chapter 7. Wouldn't be surprised in the least if employees show up to work one day, only t
35 Post contains links beryllium : The bankruptcy court hearing is going on at this moment (started at 1:30ET). Among the matters that are being discussed is this one: http://www.gulfst
36 sunking737 : Looks like the writing is on the wall. Too bad no one could come up with the money to take over the company. Is Great Lakes next? Small air carriers s
37 hatbutton : It's too bad. The writing was on the wall when the regs were change to include 19 seaters in Part 121 ops. That and, there is no suitable 19 seat rep
38 kgaiflyer : Anyone know if Gulfstream will lose its FAA Part 121 Certificate or its CSP License from the Office of Foreign Asset Management?[Edited 2011-01-07 13:
39 kbpilot5 : I heard they were bought today.
40 ScottB : From reading the current docket, it appears that there was a winner in the auction, but two of the three secured creditors filed objections to the wi
41 FWAERJ : I wonder if Cape Air is the mystery buyer?
42 cbphoto : Doubt it, actually I highly doubt any airline would buy 3M. Their really is nothing that 3M has that would appeal to many carriers. This would be pre
43 knope2001 : Very true on both accounts. I'm very hopeful that the recent crop of RJ airlines bidding for EAS markets will grow and change the face of the program
44 adxmatt : Explain why improving the safety to part 121 standards caused the demise?
45 hatbutton : Why is that? I mean, it brings subsidy per seat down, but wouldn't the costs of operating an RJ significantly add to the subsidy if the pax loads don
46 Post contains links beryllium : Very few EAS markets would be able to support RJ service. Some communities do not even have the potential to make service on a 30-seat turboprop sust
47 knope2001 : RJ's are definitely more expensive to operate of course. But take a look at the pending bids for Grand Island, Nebraska to see what is happening in s
48 Post contains links cbphoto : http://www.omaha.com/article/20101229/NEWS01/712309906 It looks like GRI will indeed get the RJ service to DFW, If the DOT approves! RJs might indeed
49 beryllium : Great post. Thanks for the info.
50 hatbutton : Because it requires much more back office function, paperwork, auditing, and staffing. I'm not saying at all that more safety is a bad thing. Just sa
51 DashTrash : Cape Air places an emphasis on safety that Gulfstream doesn't..
52 hatbutton : I agree. Being a part 135 carrier doesn't mean you are unsafe and being part 121 doesn't mean you are safer. Which is why it's too bad that 19 seater
53 Highflier92660 : If Gulfstream International ceases operation, not only will impact travel throughout Florida but it will have some unintended political consequences.
54 Post contains links beryllium : The mystery buyer is Victory Park Capital Advisors LLC... (However, the sale is currently being objected) http://www.gulfstreamreorg.com/pdflib/292_4
55 Post contains images kgaiflyer : Victory Park Capital Advisors of Chicago Illinois??? Geez -- what airline could ***possibly*** be based in Chicago Illinois?
56 ScottB : Except that CO very conspicuously got out of the business of owning its own regional feeders. I don't think 3M is even worth the distraction. I'm not
57 USXguy : Continental divested its interests in Gulfstream 10 years ago, I believe.. why would they want them now?
58 hatbutton : Yes, no airline is free of incidents. But they have had no safety issues to speak of. And the determined cause of the fatal crash was spatial disorie
59 kgaiflyer : You're asking me to speculate (I have no real knowledge on the filing and am not in aviation). Well, first, post-merger UA (IIRC UA is 55% owner of t
60 Post contains links ridgid727 : Apparently a judge has approved this bankruptcy sale, to Victory Park Capital, and it is awaiting regulatory approval. This article came out yesterday
61 FWAERJ : I remember reading somewhere that 3M wanted to expand their CLE flying beyond EAS services. 3M B1900 flights from CLE to thin/short routes like SBN,
62 hiflyer : UA refused to make 3M a UAX carrier years ago after Atlantic Coast pulled their florida ops. Ran as United Connection but not Express. After 2000 UA s
63 ridgid727 : If they do get those EAS contracts in Montana and Arizona, they would be wise to try and get a code share with Alaska, and that would bolster boarding
64 Post contains links KarlB737 : Gulfstream Airline Sale Saves 600 Jobs http://www.bizjournals.com/mobile/so...m-airline-sale-saves-600-jobs.html
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