Tuesday, February 28, 2006

Simmons Air Saga

After much turmoil and confusion, Simmons Air aparently has more hurdles to leap before finally taking off from Ocean City. The good news is that the piggy-back relationship with Cape Air for its certification & operational expertise is done. It appears to be a wet lease/cost-plus arrangement with Simmons taking on the risk that the passengers for Ocean City-BWI are ready to fork over cash for the service. We’re not aviation lawyers, but we don’t think there is much to do on the regulatory side for Simmons at this point if they use the Cape Air name thus avoiding the approvals surrounding a d/b/a arrangement. In the article, it is claimed that Simmons is suggesting that there is. If someone knows for sure please let us know. There certianly is a chance that Simmons and/or his supposed 650 investors are getting nervous about re-starting service that apparently had little market support when it was originally launched.


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