Employees Reimbursed For Portion Of Concessions

Want to hear a happy airline story, for a change? Consider the roller coaster case of Sun Country Airlines... which just three months ago appeared close to the brink of failure, but has since seen its fortunes turn decidedly positive.

The Minneapolis Star-Tribune reports the airline, which lost $17.8 in the fourth quarter of last year, should finish 2008 at the break-even point... or even with a small profit.

As ANN reported, Sun Country 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, Sun Country CEO Stan Gadek asserted his airline would continue flying... but 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.

Gadek was pleased to report much happier news this week. On Monday, he told employees the most recent concessions would be allowed to lapse December 31, as planned. Furthermore, employees were reimbursed for 40 percent of their early October wage sacrifices on this week's paychecks, and Gadek expects to be able 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.

"My commitment to them was to give them back their money as quickly as possible, and I feel that we are in a position to do that," Gadek said.

Despite the gloomy economic situation, Gadek says Sun Country is enjoying healthy bookings for its niche service to vacation destinations like the Caribbean and Mexico.

"Frankly, when cold weather sets in here, it's good for business," Gadek told the St. Paul Pioneer Press.

FMI: www.suncountry.com