Sun Country Airlines Announces Reorganization To Exit Bankruptcy

 

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Sun Country Airlines Announces Reorganization To Exit Bankruptcy

By Jim Douglas
 

September 13, 2010 - Sun Country Airlines announced the confirmation of its plan of reorganization which allows the company to exit bankruptcy. The plan was confirmed by Judge Robert J. Kressel during a court hearing this morning in Minneapolis and was overwhelmingly approved by the creditors eligible to vote. The plan provides for cash payments to certain creditors, as well as a distribution of equity in the reorganized company to other creditors. 

 “Today marks an important step in the company’s emergence from bankruptcy,” said Stan Gadek, Sun Country Airlines president and CEO. “I wish to thank both our employees and our customers who continued to support the company during this process.  

 

“The plan’s confirmation highlights the successful turnaround of Sun Country Airlines which will emerge as a profitable and debt-free company.” Gadek went on to say, “Going forward, Sun Country is well positioned for growth and success as The Hometown Airline.”  

MN Airlines, LLC, operating as Sun Country Airlines, is an American low-cost airline headquartered in the Minneapolis-St. Paul suburb of Mendota Heights, Minnesota. Sun Country uses nearby Minneapolis-Saint Paul International Airport (MSP) as its main hub and flies scheduled and charter flights from the Humphrey terminal to destinations in the United States, Mexico, and the Caribbean. 

In 2000, Sun Country announced plans to replace its entire fleet with new Boeing 737 next-generation aircraft, with deliveries beginning in 2001. As Sun Country reinvented itself, heavy competition from local incumbent carrier Northwest Airlines and the events of 9/11 caused a precipitous drop in traffic and revenue.  

Contrary to its tradition of financial success and profitability, by the summer of 2001 the airline was bleeding money. After fighting to stay operational by cutting flights, destinations, and planes, the company had to close its doors on December 8, 2001. 

 

Sun Country was among the first airlines to operate out of the new terminal D at Dallas-Fort Worth International Airport, which officially opened on July 23, 2005. Sun Country filed Chapter 11 bankruptcy on October 6, 2008. However, it is fully operational as of November 2009 and has been flying charter service for the U.S. Military. The airline announced on June 30, 2010 that the airline would offer flights to five destinations from Capital Region International Airport in Lansing, Michigan.

 

 
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