Friday, July 21, 2006

Petters Finishes What He Started...Sun Country Acquisition Moves Forward

As reported here, Tom Petters, a non-airline businessman from Minnesotta, and his partners have set the wheels in motion to buy Sun Country.

Petters' previous attempts to buy Sun Country did not materialize.


At 4:47 PM, Anonymous Tucano Bandeirante said...

The deal is done.

Petters buys Sun Country
Friday July 21, 4:12 pm ET

Sun Country Airlines Inc. has agreed to be bought by Twin Cities businessman Tom Petters.
The board of the Mendota Heights carrier, which competes with Northwest Airlines Corp., voted to approve the deal late Thursday, a spokeswoman said. Terms were not disclosed, but Petters and a Minneapolis investment firm, White Box Advisers will reportedly acquire a 100 percent stake of Sun Country.

The airline's shareholders are expected to vote on the deal Friday. Federal approval could take up to 60 days.

Sun Country lost $11 million last year on revenue of about $204 million; CEO Shaun Nugent has attributed the loss to the price of fuel, which has skyrocketed over the past two years. The airline carried 1.6 million passengers, up 30 percent from the year before.

Since emerging from Chapter bankruptcy 11 in 2002, Sun Country cautiously but steadily built its business and schedule, focusing on a core set of major cities and leisure markets while keeping costs low.

Late last year the company began a hunt for up to $18 million in capital. Petters came forward as a possible investor in late January.

At 8:30 PM, Anonymous Anonymous said...

I don't keep up on Sun Country too much, but I have heard from others that one of their strongest attributes is the Humphrey Terminal at MSP. Locals seem to like its convenience over the main terminal & NW.

Maybe this investor is in tune with this. If it would be feasible, a codeshare with Midwest, also at the Humphrey Terminal, could bear fruitful, even though a great majority of their service is seasonal.

At 1:46 AM, Anonymous Anonymous said...

what a great group that runs it and owns it!! Hope they can out do nwa with killer service nwa knows nothing about that

At 1:47 AM, Anonymous Anonymous said...

great deal!!!!!!!!


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