Airline Continues Path To Recovery

Sun Country Airlines continues on the road to recovery, even at a time when many other carriers are ailing. The niche carrier announced Tuesday it had repaid in full the Debtor in Possession financing loan the airline received in December 2008.

"This is a significant achievement as we continue to position Sun Country as a successful, profitable, low-fare airline based in the Twin Cities," said president & CEO Stan Gadek. "Sun Country has become more efficient and financially stronger despite adverse circumstances. Our success is due to the loyalty and dedication of every member of the Sun Country team and the continuing strong support of our customers."

Fortunes turned decidedly against Sun Country last year, when parent company Petters Aviation, LLC filed for Chapter 11 bankruptcy protection on October 6. The capitulation came about two weeks after the offices of Petters Group Worldwide were raided by federal agents. Company founder Tom Petters resigned as chairman of Sun Country's board of directors soon afterward, under clouds of accusation and a strong whiff of corporate malfeasance.

Despite the turmoil, Gadek asserted his airline would continue flying... though employees were asked to accept two rounds of pay cuts through the end of the year, as the decline of Petters tanked the airline's chances of securing outside loans to cover regular payroll.

At the time, Gadek also promised those cuts would be short-lived. The airline allowed certain pay concessions to lapse December 31, as planned, and employees were reimbursed for 40 percent of their early October wage sacrifices on their end of year paychecks. The airline plans to pay back the rest of the deferred wages by April -- plus three percent interest, for what amounted to a loan from the airline's workforce.

As ANN reported, Sun Country reported in January its first fourth quarter profit since 2002. The airline also projects a profit for the first quarter of this year, and full year 2009 -- its first in many years.

"We are doing things right and building a strong foundation for a solid future," Gadek said.

FMI: www.suncountry.com