Champion Air to Cease Flight Operations May 31st

[diveblondy]

Champion Air to Cease Flight Operations May 31st

Bloomington, MN – (March 31, 2008) – Champion Air announced today that it will cease flight operations May 31, 2008.

"This is a sad day for the entire Champion family," said Champion President and CEO Lee Steele. "The men and women of this airline have poured themselves into providing safe, reliable and pleasing service to millions of customers over our 11 years in business. Unfortunately, however, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services. Those factors also have impeded our efforts to attract new capital and new investors. Accordingly, the management team and our board of directors have decided that the best course of action is to cease flying and to wind up our operations in a responsible, deliberate manner."

Steele noted that the run-up in fuel prices strongly impacted Champion's fleet of three-engine Boeing 727s and that both the overall economic slowdown and the tight credit markets had a strong, negative impact on the airline's business prospects and its efforts to attract investors. Compounding the challenges facing the airline was a growing trend in the marketplace away from charter carriers for certain types of flying.

"Champion really has experienced a 'perfect storm' that has simultaneously affected our cost structure, our ability to generate revenue and our ability to restructure ourselves," Steele said. "Any one of those factors would be difficult; collectively they are insurmountable…even with the tremendous employees we have and the best efforts of everyone involved.

"The people of this airline can take a very justifiable pride in what they have created," Steele continued. "This situation is in no way a reflection of their talents, their commitment or their passion for our customers."

Champion will fulfill all outstanding service commitments and will remain fully in compliance with all regulatory, operational and labor contract requirements. The company has adequate funds to continue operations and to settle all outstanding financial obligations.

The airline's current 550 employees will continue to receive their pay and benefits through May 31. Notification of the impending shutdown as mandated by the Worker Adjustment and Retraining Notification (WARN) Act and any similar state and local regulations is underway.

 

[Debraw]

Oh man that's a shame. Champion was a big time charter airline for those nice cheap trips to Cozumel!

I made a conscious decision this year not to travel anywhere out of the country for the next two years. Rising fuel costs, home loan defaults, and so many of our own countrymen in crisis, I decided to keep my dollars in the United States. Americans need the money! There are many beautiful places in the USA that I have never seen or dove.

 

[Hemlon]

I've never even heard of Champion Air.

 

[georoc01]

Yeah, First Frontier cancels Cozumel flights, then Aloha Air goes out of business and now the loss of the Champion Charters. Cheap options to diving destinations are growing more scarce every day..

 

[Hemlon]

And other companies are offering low-cost flights....Viva Aerobus, for example.

 

[k-valve]

I've never even heard of Champion Air.

That's probably 'cause they are a very small airline that only flys in and out of Dallas (for TX anyway).

 

[k-valve]

And other companies are offering low-cost flights....Viva Aerobus, for example.

Yeah, I think Zinc and I are going to use them to fly to Cancun from Austin this summer. If we survive the trip we'll post a flight report.

 

[Hemlon]

I almost booked with them, John. But I decided to just spend the extra $$ and fly directly into Coz.

I look forward to hearing your reports!

 

[scubashawn123]

Yeah, First Frontier cancels Cozumel flights, then Aloha Air goes out of business and now the loss of the Champion Charters. Cheap options to diving destinations are growing more scarce every day..

I don't know if you noticed but we are facing a major recession that we have not seen in 20 plus years.

The oil companies agenda is to get gas prices to $5 a gallon in the US by August. We will see if they get their way or not.

Just my opinion and does not represent anyone but myself, my reading and my thoughts.

 

[k-valve]

I don't know if you noticed but we are facing a major recession that we have not seen in 20 plus years.

Oh, come on, Shawn, we're not in a recession...except for a couple of states controlled by the Democrats. Ask any staunch Republican, they'll be more than happy to verify this.