Sun Country Airlines is in trouble. Its former chairman resigned and was arrested last week. Now it says it might shut down by Dec. 1.
In a letter sent to employees, John Fredericksen, the airline’s general counsel, called the airline’s situation a “serious financial crisis.”
Should Sun Country not be able to obtain additional financing or obtain relief from our major creditors in the near future, there is a distinct possibility that the airline will be shut down and/or you will be furloughed.
So how serious is this, and what does it mean for people with travel plans on Sun Country?
Another airline expert interviewed by the Minneapolis Star-Tribune believes the airline will keep flying, adding that he wouldn’t hesitate to book a ticket on Sun Country.
I was interviewed in the same story, and my advice was to “proceed with caution.” I think there’s a very real possibility that Sun Country will close permanently.
What’s more, banks and credit card companies get really funny about tickets purchased on liquidated carriers. Although the Fair Credit Billing Act protects purchases made up to 60 days ago, credit card dispute departments have been known to punt to a bankruptcy court when an airline goes belly-up — meaning the insolvent company keeps your money and you become a claimant in bankruptcy court. And that means you’ll only recover pennies on the dollar, if that.
I hope I’m wrong about Sun Country.
