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Sun Country Airlines up for sale

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ERIC TORBENSON STAFF WRITER
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The family that owns Sun Country Airlines said today it has put the carrier up for sale, citing a drop in business after the Sept. 11 terrorist attacks.
The La Macchia family of Milwaukee, the owners, has removed itself from Sun Country’s board and is asking for investors to buy the struggling low-fare carrier, which serves the Twin Cities from the Hubert H. Humphrey terminal at Minneapolis St. Paul International Airport.

The airline already is in talks with a variety of investors, some of which have been "positive," said a spokeswoman for the airline.

Sun Country started scheduled air service in June 1999 after 16 years of successful charter vacation flying.

The results of the change haven’t been good: Sun Country has lost more than $70 million since beginning the scheduled service to about a dozen top routes from the Twin Cities.

The carrier met with its labor groups Thursday, asking for pay concessions and contemplating an across-the-board pay cut to help conserve cash.

Tammy Lee, a spokeswoman for the airline, wouldn’t speculate about what would happen if it were unable to find investors. "Our need for cash is immediate," she said.

Sun Country has wanted to change the composition of its fleet since the beginning of the year in order to save money. It currently has two types of aircraft: Boeing 727s and new Boeing 737s.

One potential investor is George Wozniak of Hobbit Travel, which sells the most Sun Country seats of any local travel agency. Wozniak said he’d meet with Sun Country officials Friday. His firm uses Sun Country for 10 flights a week for charter vacation packages, and Wozniak said he’d be interested in the airline to help solidify his flying needs.

The move would mean the end of Bill La Macchia Jr.’s involvement with the airline. La Macchia Jr. was the main spokesman for the carrier the past 2{ years and served as president until this year, when Sun Country replaced him with industry veteran David Banmiller.

Banmiller is now charged with finding new investors. La Macchia Sr., who controls the Mark Travel Corp. vacation network based in Milwaukee, has invested between $60 million and $80 million in the carrier.