National Airlines, Inc. Files for Chapter 11; Company to Continue Normal Operations During Financial Restructuring
National
Airlines Files For Chapter 11; Company to Continue Normal Operations During
Financial Restructuring
|
LAS
VEGAS, NV (DEC 6) – National Airlines, Inc. (“National Airlines” or the
“Company”) filed a voluntary petition for reorganization under Chapter
11 of the United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Nevada today. The bankruptcy filing was necessitated
by the burden of escalating fuel prices. National Airlines is continuing
all normal business operations and will continue uninterrupted services
to its customers.
Michael J.
Conway, president and CEO of the airline stated “we want to assure our
customers that we will continue to operate on a normal schedule without
interruption, and we are dedicated to serving our customers’ needs today
while we strengthen our ability to provide them with high-quality service
well into the future, Protecting customer interests and providing them
with exceptional customer service has been and remains one of our top priorities.”
|
|
National Airlines
is taking steps to ensure it will continue to meet its obligations to its
employees and essential vendors. “We are focused on structuring the balance
sheet to allow National Airlines to become stronger and more viable in
the future,” Conway said. “We remain dedicated to our business and believe
that our financial situation is a short-term issue that can be successfully
managed through the reorganization process.”
He added, “We
have carried more than 2 million passengers in less than 16 months of flying.
We have been recognized as one of the best airlines in the industry for
customer service. We are operating with unit costs that are lower than
any other U.S. major airline. And we have the best employees, bar none.
The fact of the matter is, the more established airlines have deeper pockets
that help them to withstand these kinds of fuel prices.
“Once we have
completed the reorganization process, we expect National Airlines to emerge
as a stronger company with a sound financial structure that is appropriate
not only for today’s level of business activity, but also for the future,”
the CEO stated. “The decision to file for Chapter 11 protection was difficult,
but necessary in order to protect our ability to meet our obligations to
our customers.”
National Airlines
operates one of the industry’s most modern, fuel efficient, all-Boeing
fleets of 757 jet aircraft. Each aircraft is comfortably configured with
175 seats, including 22 in first class. The carrier currently serves Chicago
Midway, Dallas/Ft. Worth, Los Angeles, Miami, Newark, New York JFK, Philadelphia,
San Francisco and Washington, DC with nonstop flights to and from its Las
Vegas hub. National Airlines will begin new service at Chicago O’Hare on
January 25, 2001 with nonstop service to and from Las Vegas.
