Gee, now I wonder if AA is going to take away the all first-class configuration on the Fokker 100s.
Legend Airlines Suspends Operations
Updated 11:34 AM ET December 2, 2000
DALLAS (AP) - Legend Airlines, a start-up that said it lost $1 million a week in its first six months, suspended operations Saturday.
It was unclear how long the shut down would last or what the prospects for recapitalization were, spokeswoman Kim Plaskett said.
Continental Airlines and Continental Express have agreed to honor Legend tickets to all destinations, she said.
Launched in 1996, Legend attempted to challenge Fort Worth-based American Airlines for business travelers in the Dallas-Fort Worth market by offering first-class amenities, such as leather seats and in-flight live television, aboard 56-seat jets.
American and the city of Fort Worth tried to block the airline's start-up, but Legend won the lengthy court battle and began flying from Dallas Love Field on April 5.
Last week, Legend filed documents with the U.S. Department of Transportation indicating it had lost nearly $44.7 million since 1996.
As of Sept. 30, Legend had $184,522 in cash on hand and reserves were declining by nearly $14,500 a week. At that rate, it would run out of cash the week of Christmas.
T. Allan McArtor, the airline's president and chief executive officer, said last week that the company would be able to raise enough capital to keep going. He said advance ticket sales for the holiday season and early 2001 are "very strong."
High fuel prices and higher-than-expected labor costs for retrofitting planes contributed to the airline's troubles, McArtor said.