superdawg
Posts: 335
Joined: Sat Jan 22, 2000 1:45 am

Another Chapter 11 - Allegiant Air

Fri Dec 15, 2000 12:35 am

After suspending some services last week, we now get:

Allegiant Air, Inc. Files for Chapter 11 Bankruptcy Protection;
Airline Continues to Fly Charters and Las Vegas-Fresno Route
Updated: Wed, Dec 13 08:06 PM EST

FRESNO, Calif. (BUSINESS WIRE) - Allegiant Air, Inc., a privately-held all-jet air
carrier providing scheduled and charter operations in the West, today announced
that the skyrocketing price of fuel has caused it to voluntarily seek protection from
creditors and reorganize its business under Chapter 11 of the United States
Bankruptcy Code.

The company said its scheduled airline service between Fresno and Las Vegas and its
charter operations will continue without interruption.

The company filed for bankruptcy protection today in the Fresno Division of the
Eastern District of the United States Bankruptcy Court.

Along with the Chapter 11 filing, the company said it is aggressively pursuing its
strategic alternatives, including additional funding, sale of the company and/or
partnerships to strengthen the company and its financial position. The company has
already arranged for a debtor-in-possession credit facility through one of its largest
creditors in order to help fund the company's reorganization efforts.

"The decision to file for Chapter 11 was difficult, but necessary in order to continue
to operate in the current business environment," said Mitch Allee, Allegiant Air
Chairman and CEO. "This move gives us the opportunity to continue with our charter
operations and most productive scheduled service while we reorganize the company
and eventually emerge as a stronger airline.

"Meanwhile, the people of Allegiant Air continue in their dedication to deliver an
outstanding airline product," said Allee.

The company announced last week, when it suspended service to four cities, that it
has seen jet fuel prices climb from 80 cents a gallon one year ago to current prices
at $1.38 a gallon, a 73% year-over-year increase in the airline's single largest
expense item.

The company said that it has furloughed a total of 112 full-time and part-time
employees and retains a staff of 51 employees based in Fresno.

The company said it continues in good standing with the Department of
Transportation and the Federal Aviation Administration as a certificated scheduled air
carrier.

About the Company

Allegiant Air, Inc., founded in 1997, is certificated by the U.S. Department of
Transportation as a "scheduled air carrier" with authority to fly scheduled and charter
airline operations throughout the U.S. Headquartered in Fresno, California, the
privately-held company operates an all jet fleet of four DC-9 aircraft.


 
Tan Flyr
Posts: 1579
Joined: Sat Aug 19, 2000 11:07 pm

RE: Another Chapter 11 - Allegiant Air

Fri Dec 15, 2000 6:34 am

Too bad..another one bites the dust. Number one reason of business failures in America..Lack of reserve capital. Number 2..poor business plan. Not sure Long Beach was a real good choice.
 
Guest

RE: Another Chapter 11 - Allegiant Air

Fri Dec 15, 2000 7:32 am

Its a shame...


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Matt D
Posts: 8907
Joined: Fri Nov 19, 1999 6:00 am

RE: Another Chapter 11 - Allegiant Air

Fri Dec 15, 2000 9:50 am

Legend, National, and now Allegiant...
This is definitely a dark week in the history of startup airlines.

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