Speculation that the Mendota Heights-based airline would change hands heated up in March. At the time, the trustee handling the bankruptcy case for the airline’s former owner, Tom Petters, reported in a court filing that he was “anticipating accepting a letter of intent from a proposed purchaser shortly.”
Suitors have pursued the airline since 2008, when the company filed for Chapter 11 bankruptcy protection, Gadek said. However, company officials are waiting for the right buyer, one who will support the airline’s strategy and employees, before closing a deal, he added.
Sun Country’s bankruptcy came on the heels of Petters’ arrest. Prosecutors charged the former Minnesota businessman was orchestrating a multbillion-dollar Ponzi scheme. He was later convicted and imprisoned.
Despite the turbulence of recent years, Gadek sees a bright future for the airline. “We’re profitable, out of bankruptcy and poised for growth,” he said.
Some other highlights from the event:
• Sun Country may start service to Hawaii this coming winter, though the carrier hasn’t made a final decision, Gadek said. Service from Minneapolis would include one stop on the West Coast. The carrier specializes in warm-weather destinations, including Mexico, though it serves many other domestic destinations.
• On coping with the Petters bankruptcy and trial, Gadek said: “Tom had an exciting vision of what he wanted to do. When his problems came crashing down, it was a huge let-down. People had been sold a dream and they bought into it heart and soul.” The airline’s employees deserve “virtually all the credit” for the company's successful exit from bankruptcy, he added. They maintained strong customer service, helping the business retain loyal passengers.
• On business strategy, Gadek said one of top priorities has been to diversify. In addition to regular consumer air service, the carrier offers charter flights and travel-management services. Sun Country plans to expand its charter business via deals with the military, providing overseas service to small groups of soldiers, he said. Sun Country’s recent foray into international service, including its new route to London, is part of that plan. The carrier’s upcoming flight to Germany, which will give passengers 30 hours in the country before returning home, will double as a “demonstration” flight for the U.S. Department of Defense, he said. Sun Country also has succeeded by expanding service to cities such as Lansing, Mich., where major airlines have cut back on flights.
• Sun Country is known for its successful branding campaigns, including its “hometown airline” tagline. (The carrier started that campaign shortly after Northwest Airlines was sold to Delta Air Lines Inc.) The company is embarking on another campaign, which will center around the theme of “soar,” Gadek said. One tag line will be: “They fly. We soar.” Gadek also held up a sign (which won't be part of an actual campaign) depicting a large rat with a 'prohibited' slash — a dig at Delta’s recent troubles with a rat-infested plane.
(Katharine Grayson - Minneapolis-St. Paul Business Journal)
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