National Airlines goes under!!!
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National Airlines goes under!!!
Reproduced below is an article from Netscape.
LAS VEGAS, Nevada (AP) -- National Airlines, which flew tourists to the nation's gambling capital, has tucked away its chips and folded after nearly two years in bankruptcy court.
The Las Vegas-based discount airline grounded its 18 planes with little warning Wednesday evening, catching its 1,500 employees by surprise and stranding travelers.
"It's so aggravating," said Steve Devery of Bremerton, Washington, as his wife scrambled to make new plans at McCarran International Airport to get back home. "I can't believe they just left us on our own."
National said it would offer no refunds and was telling customers to contact their credit card companies. The airline's Web site also was shut down.
Three other western U.S.-based airlines -- Alaska, America West and Frontier -- said they would accept National passengers' tickets on a standby basis for flights on the same day as the original ticket and to the same cities.
About eight scheduled departures from McCarran were canceled Wednesday, some just before planes were to depart. McCarran spokeswoman Hilarie Grey said the airport was trying to accommodate stranded passengers.
National filed for bankruptcy protection in December 2000, but was unable to develop a reorganization plan after the Air Transportation Stabilization Board denied its request for a $50.5 million federal loan guarantee.
"We kept fighting and a lot of people kept working with us," National spokesman Dik Shimizu said. "But the airline industry is still hemorrhaging red ink and obviously it's not an easy task to attract new capital."
He blamed the airline's failure on high fuel prices, the post-terrorist attack tourism slump and the overall economic downturn.
A U.S. Bankruptcy Court judge in Las Vegas had given tentative approval in September to a $112 million financing package that would have included a $2 million letter of credit from an unnamed aircraft leasing company. The credit would have served as collateral in a complicated loan agreement with Foothill Capital Corp., a subsidiary of Wells Fargo Bank.
Another hearing was scheduled for November 15.
"We were very close to completing a successful reorganization on a few different occasions, only to have additional obstacles confront us at the last minute," said Michael Conway, National president and chief executive. "We were able to meet all these challengers successfully, until now."
The company began service in May 1999, billing itself as Las Vegas' hometown airline and a boost to the city's tourism industry. National flew to Chicago, Dallas, Los Angeles, Miami, New York, Philadelphia, Reno, Nevada, San Francisco, Seattle, Newark, New Jersey, and Washington, D.C.
Rob Powers, a spokesman for the Las Vegas Convention and Visitors Authority, said the airline's collapse won't cause lasting harm to the city's economy.
"National has been a valuable community asset," he said. "But it is our belief that other air carriers will fill the void left by National Airlines." Another discounter, New York-based JetBlue Airways, is scheduled to begin service to Las Vegas January 7.
Some employees cried when they learned the news, others were more resigned. Customer service supervisor Thomas Fongaro, 39, had worked for National since its start.
"It's time to pack up the bags," said Fongaro, an industry veteran of 22 years. "In this business you never know when something like this is going to happen, but it's time to get out."
LAS VEGAS, Nevada (AP) -- National Airlines, which flew tourists to the nation's gambling capital, has tucked away its chips and folded after nearly two years in bankruptcy court.
The Las Vegas-based discount airline grounded its 18 planes with little warning Wednesday evening, catching its 1,500 employees by surprise and stranding travelers.
"It's so aggravating," said Steve Devery of Bremerton, Washington, as his wife scrambled to make new plans at McCarran International Airport to get back home. "I can't believe they just left us on our own."
National said it would offer no refunds and was telling customers to contact their credit card companies. The airline's Web site also was shut down.
Three other western U.S.-based airlines -- Alaska, America West and Frontier -- said they would accept National passengers' tickets on a standby basis for flights on the same day as the original ticket and to the same cities.
About eight scheduled departures from McCarran were canceled Wednesday, some just before planes were to depart. McCarran spokeswoman Hilarie Grey said the airport was trying to accommodate stranded passengers.
National filed for bankruptcy protection in December 2000, but was unable to develop a reorganization plan after the Air Transportation Stabilization Board denied its request for a $50.5 million federal loan guarantee.
"We kept fighting and a lot of people kept working with us," National spokesman Dik Shimizu said. "But the airline industry is still hemorrhaging red ink and obviously it's not an easy task to attract new capital."
He blamed the airline's failure on high fuel prices, the post-terrorist attack tourism slump and the overall economic downturn.
A U.S. Bankruptcy Court judge in Las Vegas had given tentative approval in September to a $112 million financing package that would have included a $2 million letter of credit from an unnamed aircraft leasing company. The credit would have served as collateral in a complicated loan agreement with Foothill Capital Corp., a subsidiary of Wells Fargo Bank.
Another hearing was scheduled for November 15.
"We were very close to completing a successful reorganization on a few different occasions, only to have additional obstacles confront us at the last minute," said Michael Conway, National president and chief executive. "We were able to meet all these challengers successfully, until now."
The company began service in May 1999, billing itself as Las Vegas' hometown airline and a boost to the city's tourism industry. National flew to Chicago, Dallas, Los Angeles, Miami, New York, Philadelphia, Reno, Nevada, San Francisco, Seattle, Newark, New Jersey, and Washington, D.C.
Rob Powers, a spokesman for the Las Vegas Convention and Visitors Authority, said the airline's collapse won't cause lasting harm to the city's economy.
"National has been a valuable community asset," he said. "But it is our belief that other air carriers will fill the void left by National Airlines." Another discounter, New York-based JetBlue Airways, is scheduled to begin service to Las Vegas January 7.
Some employees cried when they learned the news, others were more resigned. Customer service supervisor Thomas Fongaro, 39, had worked for National since its start.
"It's time to pack up the bags," said Fongaro, an industry veteran of 22 years. "In this business you never know when something like this is going to happen, but it's time to get out."
I had an arsehole transplant but the arsehole rejected me, which is why I write such rubbish
Join Date: Jan 2001
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Why didn't the Casinos help?
and it ruined my upcoming vacation too....2 weeks and 6 days before I was ready to leave.
No big deal compared to the pain the employees are feeling.
Initially developed by the Casinos, I'm amazed they didn't ante up to the table and protect their investment. It's not like the Casinos to give anything anyway, let alone lose money.
No big deal compared to the pain the employees are feeling.
Initially developed by the Casinos, I'm amazed they didn't ante up to the table and protect their investment. It's not like the Casinos to give anything anyway, let alone lose money.
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I think the casino investors were trying to dump this boat anchor for a long time, but litigation and bankruptcy issues prevented them from a rapid egress when they saw the cards were marked. Long before 9/11!
Ecce Homo! Loquitur...
Duplicate thread. See "National Airlines II Bites the Dust" opened yesterday:
http://www.pprune.org/forums/showthr...threadid=71908
http://www.pprune.org/forums/showthr...threadid=71908
