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Western Pacific in Chap. 11
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October 6, 1997: 12:01 p.m. ET
Airline says it is negotiating for financing; plans normal operations
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NEW YORK (CNNfn) - Western Pacific Airlines said Monday it has filed for Chapter 11 bankruptcy protection and is negotiating to line up debtor in possession financing.
The company, which serves 17 cities with a fleet of 19 Boeing 737-300 jets, said it intends to operate on a normal schedule. Code share flights with partner Frontier Airlines also will operate on a normal schedule.
Western Pacific shares were down 1-3/4 to 1-1/16 in midday trading.
Airline president and chief executive officer Robert A. Peiser, who joined the company last December, said the filing should not lead to uncertainty among employees and customers. He said it is intended to start an orderly process that will protect the airline's service and operations.
"We regret the necessity of seeking protection under Chapter 11. Although new management installed in the past year changed many operating strategies of the company, there simply was an insufficient amount of time to capitalize on the company's fundamental strength and enable these actions to produce the positive results anticipated," Peiser said.
"Since last December, when I joined the company, we have had to act very quickly to implement necessary changes, but we simply have not had enough time yet to reap the benefits of our business plan," he added.
Peiser said the airline plans to retain its low-fare pricing.
--Cyrus Afzali
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