LAXintl
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DOT Denies Ryan Certificate Sale To People Express

Wed Feb 12, 2014 12:40 am

Last month we had a thread that the Chapter 7 liquidation trustee for Ryan International Airlines (AJet Holdings) sought to sell Ryan's remaining assets to People Express Airlines ( People Express Seeks To Buy Ryan Air Intl (by LAXintl Jan 16 2014 in Civil Aviation) )

Today the DOT is out with a decision denying the waiver requested to allow for the sale.

DOT in its findings determined that it has no evidence that during its bankruptcy Ryan maintained the necessary personnel, ownership, financial resources, or aircraft, to sustain its FAA operating authority, and without such criteria being met Ryan has lapsed into dormancy.

Moreover, DOT found that simply purchasing Ryan assets would not allow for the imminent resumption of its operations without a full departmental review to determine the carriers fitness, a process which is largely similar to that involving a new applicant.


Order 2014-2-8


So much for that idea...   
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sunking737
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RE: DOT Denies Ryan Certificate Sale To People Express

Wed Feb 12, 2014 2:57 am

Looks more and more that Peoplexpress will not fly. Bad Karma??
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RE: DOT Denies Ryan Certificate Sale To People Express

Wed Feb 12, 2014 5:07 am

Quoting sunking737 (Reply 1):
Looks more and more that Peoplexpress will not fly. Bad Karma??

Bad karma, bad idea, whatever.  
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iFlyLOTs
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RE: DOT Denies Ryan Certificate Sale To People Express

Wed Feb 12, 2014 5:18 am

Quoting LAXintl (Thread starter):
So much for that idea...

I know that this was discussed in the other thread but what happened to Xtra and the plan to buy them? Has anyone heard anything from that part of the deal or is that still up in the air?
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F9Animal
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RE: DOT Denies Ryan Certificate Sale To People Express

Wed Feb 12, 2014 7:16 am

I don't think the Xtra deal went through. Mike Morris the former President of PEX stepped down a few months after the buyout was announced. XTRA has been silent about this as well. I am assuming the attempt to buying Ryan was to get off the ground. People Express wouldn't have needed to buy Ryan if they had Xtra. IIRC, People Express got a short term loan to buy Xtra. Maybe the loan was withdrawn?
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DTWPurserBoy
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RE: DOT Denies Ryan Certificate Sale To People Express

Wed Feb 12, 2014 8:25 pm

The loan was made by the City of Newport News and was repaid. Xtra announced the other day that their 737-400 aircraft were operating in Chile. I have never thought that PeoplExpress was a viable operation.
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F9Animal
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RE: DOT Denies Ryan Certificate Sale To People Express

Thu Feb 13, 2014 12:09 am

Just got a email from a member. Apparently the Xtra deal did not go through, which is why People went for Ryan. Also, PEX may make a play for Skyking. Whatever happens, sounds like PEX is still trying to acquire another charter.
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sunking737
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RE: DOT Denies Ryan Certificate Sale To People Express

Thu Feb 13, 2014 12:22 am

Quoting F9Animal (Reply 6):
PEX may make a play for Skyking

Wow, talk about desperation, Skyking has only 2 737-400 left (maybe). I better pop up some more popcorn, this tv series is dragging on......

Why don't they just do an ACMI from someone...Oh wait you need money for that.
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enilria
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RE: DOT Denies Ryan Certificate Sale To People Express

Thu Feb 13, 2014 2:18 am

Quoting LAXintl (Thread starter):
Moreover, DOT found that simply purchasing Ryan assets would not allow for the imminent resumption of its operations without a full departmental review to determine the carriers fitness, a process which is largely similar to that involving a new applicant.
Quoting F9Animal (Reply 4):
I don't think the Xtra deal went through.
Quoting F9Animal (Reply 4):
XTRA has been silent about this as well.
Quoting F9Animal (Reply 6):
Apparently the Xtra deal did not go through, which is why People went for Ryan.

How did we not know that? They announced that deal months ago. I wonder if FAA blocked that deal too. I hear the issue with FAA is financial fitness...shocker. Having said that, it needs to be easier to start an airline in this country. Something needs to be done to make it easier before we only have Ameriflot Airlines as our sole carrier.
 
F9Animal
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RE: DOT Denies Ryan Certificate Sale To People Express

Thu Feb 13, 2014 2:33 am

I had a feeling when Mike Morisi the founder and CEO stepped down in December, that something was not going well. Then they announced layoffs at PEX shortly after. I assumed the Xtra deal had probably fallen through. I think Skyking just just went under too.
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DTWPurserBoy
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RE: DOT Denies Ryan Certificate Sale To People Express

Thu Feb 13, 2014 6:28 pm

It is like they are casting a wide net hoping to snag someone with a valid operating certificate rather than build from the ground up. Only problem with that is that they are taking years to do it and burning through cash. With Morsi leaving and the layoff of most employees can anyone really see PEX going anywhere? Undercapitalization has killed many a start up.
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enilria
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RE: DOT Denies Ryan Certificate Sale To People Express

Thu Feb 13, 2014 8:56 pm

If they never got the Xtra certificate then they are officially DOA. I give them little hope. Sad.

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