Tiny Sun Country Airlines Inc., already facing a funding crunch and a potential employee revolt, received another bit of bad news Wednesday night when discount king Southwest Airlines Co.
said it intends to initiate service at Sun Country's Minneapolis/St. Paul hub.
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Southwest will start small, initially flying from the Twin Cities only to Chicago. But the airline has a reputation for rabid growth in new markets, and it is likely only a matter of time before it connects some dots and adds service to warm-weather destinations that are currently Sun Country's bread and butter.
Southwest could be hoping to capitalize on turmoil at Sun Country. The airline is hoping to defer half of employee wages until early in 2009 in an attempt to survive what is typically its slowest season. In years past Sun Country has turned to its former chairman and majority shareholder, Tom Petters, for a short-term loan. However, Petters resigned last week after being named as the target of a federal fraud investigation.
Sun Country, which earlier this summer sought state assistance to help cover its soaring fuel bill, has long been seen as a potential casualty in an economic slowdown. With Southwest coming to town, the challenge of keeping the airline in the air just got a little bit more difficult. - Lou Whiteman
See Southwest's statement announcing service to the Twin Cities
See Dealscape post on Sun Country asking the state for help
See Dealscape post on possible airlines in trouble
See Dealwatch: Airlines
