Sun Country might be in trouble

[Chris B]

I just heard on the radio that Sun country might be in trouble of staying afloat through the first of the year. Does anyone know the rights of a passenger if an airline went under and you have a ticket with them? I was thinking about booking my ticket but I just wanted to make sure I’m not out the money.

[steveb]

You have the right to give me the money instead.

Joking aside I'm afraid I don't know. I'd guess you'd be like any person owed money by a bankrupt company, trying to get it back through court from the receivers and getting cents on the dollar.

I really hope they survive as NW will jack the price if they have no competition on this route.

[mdh01]

Recent article in the Star Tribune paper:

"It's the consumers who will help determine whether Sun Country survives," Terry Trippler, a Minneapolis-based airline expert, said Thursday.

"Would I buy a ticket from Sun Country for travel in October and November? Yes I would, because that's the hump they have to get over," Trippler said.

Consumers looking to fly Sun Country beyond Dec. 1 are not at risk of losing their money should the carrier shut down, the airline said. Credit card companies hold funds on advance ticket purchases until the flights have occurred, so consumers either will fly or get refunds.

But that holdback is one of the contributors to Sun Country's cash squeeze, said CEO Stan Gadek. He estimated that about $25 million of Sun Country's ticket-sales revenue is being held by the credit card companies.

[djmadmike]

I hope they make it! It is great to get out of bed at 6:30am and be riding by 2:30pm the same day.
Plus Jodie and I already have tickets booked and paid for the day before Turkey day until Dec 1
Mike N

[smrsco]

From Sun Country's website:

STATEMENT FROM SUN COUNTRY AIRLINES – October 2, 2008

In response to questions regarding Sun Country Airlines communication to the employees regarding the WARN Act, this communication was sent out in compliance with federal law and was released on a contingency basis. Federal law requires 60 days notice in the event of a shutdown or a major layoff. While Sun Country has no plans to shut down or institute a major layoff, we wanted to be sure we are in compliance with federal law in light of the recent developments at our parent company.

We want to be clear that Sun Country customers have nothing to worry about if they have purchased a ticket on the airline. We are meeting our financial obligations and have every confidence we will continue to fly. Our credit card bank retains the funds until the passengers fly and would refund those funds if for some reason any flights were cancelled.

We have been very open about the financial challenges we face since the situation with our parent company developed last week. However, over the past week we have made progress in negotiating with vendors and identifying additional sources of revenue. We have taken the very difficult step of instituting a pay deferral but have received employee support during this challenging time. The management and employees feel very confident about the future of our great airline.

[Matt G]

Sun Country Airlines, facing a cash shortage, filed for Chapter 11 bankruptcy protection today. Sun Country will continue to fly its regular schedule during the bankruptcy.

This looks to be positive. At least we have an answer, and if history is any pre-curser, this BR will drag on well past early December.