Sun Country Files for Bankruptcy – Still Flying

Another airline has filed for bankruptcy. This time it’s discount airline Sun Country (Web site: www.suncountry.com) and the filing is for Chapter 11. In this instance, the Minneapolis/St. Paul-based carrier says it will continue flying.

“We want to be clear that Sun Country customers have nothing to worry about if they have purchased a ticket,” contends the carrier in a prepared statement. “We will continue to fly our normal schedule. We will continue to operate under the same guidelines with regards to ticketing, refunds, and all other transactions.”

The release goes on to maintain that “management and employees feel very confident” about the discount airline’s future.

So, what triggered the bankruptcy move? The St. Paul Pioneer Press says Sun Country was in search of a way to control its own destiny after Petters Group Worldwide, the discount airline’s parent company, became the target of a federal fraud probe. A federal court froze Petter’s assets. “This move affords us protection while we reorganize the business,” says the Sun Country release.

Lending credence to Sun Country’s contention that passengers shouldn’t worry if they’ve booked a seat on the carrier is Sun Country’s statement that “Our credit card bank retains the funds [customers have paid] until the passengers fly, and would refund those funds if for some reason any flights were cancelled.”

© Cheapflights Ltd Jerry Chandler

Comments

[Jacquie]

November 7, 2008. My daughter and granddaughter were flying to Seattle tomorrow (11/08) to visit our other daughter and her family. This afternoon she was called and told Sun Country had cancelled the flight. She will receive a $200 voucher and told she could fly on Sunday. Well, getting there Sunday afternoon does ruin the weekend. She thought perhaps she could fly back to MSP a day later, but it looks like the 11/15 flights have been cancelled, also.