NEWS RELEASE:
For Release: April 17, 2001
Windsor Locks, CT ---Shuttle America, the Connecticut regional carrier today announced it is restructuring and reorganizing the Airline, in a move to attract new expansion capital, introduce regional jet service throughout its system and enter into a code-sharing agreement with a major airline partner.
"Since our launch in November 1998 we have carried nearly one million passengers, created a loyal following of high yield business and leisure travelers, and built a unique niche airline franchise." said David Hackett Shuttle America Founder and CEO. "But despite our success, the current investment and venture capital environment necessitates our restructuring and we plan to seek assistance from the courts to implement a re-structuring effective today. In order to further these goals, the Company today filed a Chapter 11 Petition for reorganization in Federal Bankruptcy Court in Hartford, Connecticut.
"This is a difficult decision for us, but one which we believe will ultimately be in the best interest of our loyal customers, our partner communities and the airports we serve, as well as our 250 outstanding employees & ownership group," said Hackett.
"We are currently in negotiation with more than one investment group about our reorganization and recapitalization of up to $20 million. A necessary pre-condition for both of these proposals is a move to new regional jet aircraft in the current year, a code sharing agreement to with a major airline and restructuring of our accumulated debt," said Hackett, "and our existing debt will be re-paid or restructured in accordance with federal law ."
We are profitable on an operating basis and have established a strong franchise, especially with our satellite service to/from Trenton/Mercer and Boston/Hanscom Airports. The market has proven that there is a strong demand for our product and we hope to be able to build on that foundation in the months and years ahead.
"Shuttle America anticipates that customers will not be impacted by the re-organization and it will honor all reservations for current and future travel," said Hackett, "All flights will operate as scheduled from the airports we serve at Boston/Hanscom, Trenton/Mercer, Buffalo/Niagara, New York/LaGuardia and Greensboro, NC."
Passengers needing additional information can call l-888-999-FARE (3273) or log on at www.ShuttleAmerica.com for additional information.
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