Mounting Debts Force Grounding Of Upstart Airline

It may just be a record... although certainly not the kind of record a fledgling airline wants. Just over two weeks after Western Airlines began operations, the carrier shut down operations Tuesday due to outstanding debts with several suppliers. That includes Xtra Airways, the company Western leased its planes from.

The Arizona Republic reports Western operated, however briefly, as a charter carrier from its headquarters in Bellingham, WA to four destinations in Arizona and southern California. The carrier, which began operations January 19 with leased Xtra Boeing 737-400s, had hoped to earn FAA certification as a full-fledged commercial airline in the near future.

Xtra Airways Vice President Sandy Davis told the Republic the airline would honor return flights of Western customers who may be stuck halfway between their round-trip tickets... but after that, Western would stop flying.

"Xtra has basically taken over the flights, only because of the financial constraints and because the contract has been canceled," Davis said. "We are hopeful that they will find their funding through shareholders and such to where we can continue."

Passengers who booked travel on Western -- but had not yet flown -- also appear to be out of luck, with Xtra officials stating they won't honor those tickets. As far as reimbursement, one official said Western shouldn't have run customers' credit cards until they actually took the flight.

"At this point, if travelers show up (today), they may be relieved they didn't get charged for the flight, but disappointed that they didn't get a flight to Bellingham," said Brian Sexton, public information officer at Williams Gateway Airport in Mesa, AZ.

Sexton added his airport was taken unawares by Western's announcement -- and he hopes the cessation of operations is only a temporary setback.

"We're going to do everything within our power to work with Xtra and Western to help this come to a resolution. Western has publicly stated that Williams Gateway is their most popular route," Sexton said.

In January, officials with Western claimed they had more than 3,000 seats sold on the Bellingham-Mesa route.

Xtra VP Davis wouldn't comment on just how much money Western owes her airline, although she also said she hopes Western flies again.

"I am hopeful that will be resolved," Davis said. "They are working toward that. It's a terrible position to be in."

According to the Western Airlines website -- which is still up and running at the time of this report, although you can't book flights -- Western is "owned and led by a team of successful travel industry veterans who have developed an innovative business model that emphasizes low costs, diversified revenue sources, and leisure traffic to important tourist destinations."

FMI: www.iflywestern.com