anyone heard of Legacy Airlines?!? They are a new airline in the US based in Utica, New York and they will fly (according to their website) to all major US cities and in their second phase of expantion they will start flights to Europe. heres the press release.
LEGACY AIRLINES CONTINUES FORWARD WITH STARTUP PLANS
Despite Bankruptcy Filings Among Several Startup Airlines, Higher Fuel Costs and Tight Investment Capital Market, Legacy Moves Forward With Plans To Serve Northeast.
UTICA, NY - June 13, 2001 - Legacy Airlines announced today that it fully intends to move forward with its plan to seek certification from the US Department of Transportation and implement its business plan to serve the Northeast US with low-fare, all-jet services.
"There has been some legitimate speculation as to whether or not Legacy was going to move forward with its plans," said Stephen J. Enea, Legacy's founder and CEO. "The rash of bankruptcy filings in the past year of startup airlines like Legend, National, AccessAir, and Shuttle America, to name a few, plus the rising cost of jet fuel and the tight investment capital market, has made it difficult for Legacy to raise the necessary funds to move forward."
Despite the setbacks, including some internal issues, Legacy has made some significant strides in the past few months and is quickly addressing concerns expressed by interested investors and others that will allow the startup carrier to move forward with its plans to seek certification. "We have been aggressively tackling issues that have challenged us for the past several months," said Enea. "For a startup carrier, we have very little debt, less than $500,000 in fact. We started paying down some of the debt and expect that all of the remaining validated obligations will be paid in full by the end of August. There are some claims against the company that are not validated obligations and those will be arbitrated accordingly."
Legacy has recently made some changes internally, including the appointment of a new advisory team to the CEO and a new startup team. The new startup team is comprised of individuals who have successfully been involved in starting up new airlines and who also have good relationships with the DOT/FAA. They will work closely with Legacy's In-flight, Maintenance, Training and Operations people to guide the airline through the DOT/FAA certification process.
Legacy's new Advisory Team is made up of the company's general counsel, and the company's outside accountants and financial consultants. The team is responsible for providing guidance during the startup process, assist in the qualification of potential investors and in the management of relationships with them, and assist in the search of a new Chief Executive Officer.
"We had to make some very hard, difficult and firm decisions in our desire to move Legacy forward," said Enea. "As Chief Executive Officer of the company, my first and foremost responsibility is to the company?s investors and to maximize the return on their investment. Unfortunately, I previously let my heart dictate some of my decisions and they were not in the best interests of Legacy, financially, operationally or investment wise. The changes that have been made and are being made assure Legacy of a sound financial, operational and business future. One of these changes is the selection of a new Chief Executive Officer. The destiny of the company will shortly be entrusted to an individual with whom investors and the markets have a high level of confidence and who is substantially more qualified to run an airline than me."
Legacy plans to re-file its DOT application in October of this year, however, potential investors have put conditions on the filing, as they have on potential investments into Legacy. "Legacy has specific benchmarks it must meet in order to receive infusion of capital from investors", said Enea. "In the short-term, Legacy must resolve issues of back wages due employees and some other obligations. Our general counsel is currently addressing these matters and it is expected that they will be fully resolved within the next 45 days. In the long-term and with regard to filing a new application for certification, larger capital investment is contingent upon resolution of some minor matters; the engagement of a new CEO with proven airline experience and subsequent appointments of a CFO and other key personnel, also with proven airline experience; and starting the operation with new aircraft, including smaller regional jets."
Legacy has been advised by several potential investors that it may only file a new application for certification evidencing a minimum of $150 million in capitalization, exclusive of aircraft financing. "This requirement is not out of line by any means," said Enea. "It was always Legacy's intent to file with at least $200 million in capitalization. In view of the many bankruptcy filings of start-up carriers that have taken place within the past year and the rising cost of jet fuel, a minimum threshold of $150 million is a good safety cushion to carry the airline through the first year of operations. Our original goal three years ago was to raise a minimum of $180 million. However, I believe that with the industry the way it is now, three years cash planning and reserve is safer. To that end, I have revised the business plan internally to seek a minimum of $210 million in capitalization to carry the airline through the first three years of operation and to maintain the required DOT reserve amount through the first five years of operations."
their site is: www.flylegacy.com/
Best thing is, they will fly to Youngstown! (my local airport)
D E L T A 7 7 7