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  • Besides operating Essential Air Service in Plattsburgh, Saranac Lake, Ogdensburg, Watertown and Massena, Big Sky serves 15 communities in five western states, including Montana, Colorado and North Dakota.

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December 26, 2007

Big Sky to sell off planes and cease operation system wide

CEO of parent company announces nationwide liquidation

By KIM SMITH DEDAM

SARANAC LAKE -- MAIR Holdings, the company that owns Big Sky Airlines, is liquidating assets nationwide.

The announcement was made by MAIR CEO Paul Foley shortly after Big Sky said it would end Eastern-based flight operations.

"We're going to continue to operate the western operations as we provide an orderly transfer to another operator. Even with the higher subsidies, Big Sky cannot achieve sustained profitability," Foley told company shareholders in a teleconference, according to the Associated Press.

MAIR assets reportedly include $38.5 million in cash on hand, seven planes worth some $18.9 million, plus $3 million in spare parts.

Foley told the Associated Press the company plans to liquidate as quickly as possible and pay shareholders next year. He said the company is also trying to sell its operating certificate.

Besides operating Essential Air Service in Plattsburgh, Saranac Lake, Ogdensburg, Watertown and Massena, Big Sky serves 15 communities in five western states, including Montana, Colorado and North Dakota.

Big Sky Airlines President Fred deLeeuw told the Press-Republican last week: "We are not going into bankruptcy, and everyone who is owed money will be paid."

He did not say they were liquidating the company.

The airline has not paid for any services at Adirondack Regional Airport in Lake Clear since it began flights Nov. 1 and owes the Town of Harrietstown $51,000.

The airline also owes Clinton County about $25,000, officials at Plattsburgh International Airport said.

Under Department of Transportation contract to provide Essential Air Service, Big Sky gets reimbursed when planes arrive and depart.

But the airline has exhibited frequent flight cancellations and delays.

Both Plattsburgh and Harrietstown officials had hoped Big Sky would continue service until a replacement for the DOT contract is found.

DeLeeuw said they were closing down all eastern operations as of Jan. 7.

"Unless they fire all their employees and sell all their airplanes, they're going to have to come in here," Town Councilman Barry DeFuria said last week. "They have a contract with DOT. They have to land and whether they land empty or full, it doesn't matter."

DeLeeuw told the Associated Press the company is working with DOT to find a replacement for its western routes and was talking with several carriers but did not name them.

The airline employs nearly 450 people total.

kdedam@pressrepublican.com

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