• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Bankruptcies, Paint Spill Costs Hurt Erie, Pa., Airport's Bottom Line

Posted on: Wednesday, 28 September 2005, 18:00 CDT

By Jim Carroll, Erie Times-News, Pa.

Sep. 28--Two airline bankruptcies and cleanup costs from a paint spill have Erie International Airport tightening its financial belt.

Airport Executive Director Kelly Fredericks told members of the Erie Municipal Airport Authority Tuesday that the airport is watching its spending after two of its carriers, Northwest and Delta Air Lines, sought Chapter 11 bankruptcy protection.

And that news followed the cleanup costs of a June 30 paint spill that temporarily tainted Wolf Run in Millcreek Township.

Christopher Rodgers, the airport's director of strategic development, reported the maximum financial loss the airport could have from the two airline bankruptcy filings is about $48,000, and it might not be even that high.

Airport officials started keeping much tighter reigns on receivables and unpaid bills after the airport lost $350,000 in unpaid bills in 2002, the first time US Airways sought bankruptcy protection. The airport expects to recover all of the $50,000 in unpaid bills that US Airways had when it sought bankruptcy protection again in 2004.

Rodgers, meanwhile, cautioned board members not to rule out the possibility of yet another local carrier -- Continental Airlines -- also seeking Chapter 11 bankruptcy protection.

Rodgers said although there has been no indication from Continental that it will seek bankruptcy protection, some aviation-industry analysts worry that changes in the bankruptcy law that take effect in October might prompt additional airlines to seek that protection under the current law.

Chapter 11 protection allows a business to continue to operate free of the threat of creditor lawsuits while it reorganizes its finances under the supervision of the U.S. Bankruptcy Court.

US Airways -- the dominant airline in the Erie market -- only Tuesday emerged from its second Chapter 11 bankruptcy through a merger with America West Airlines.

Airport officials said the cleanup costs and fine for the paint spill came to about $95,000, and could have been higher had airport workers not reacted so quickly to contain the spill once they found it affected the creek.

-----

To see more of the Erie Times-News, or to subscribe to the newspaper, go to http://www.GoErie.com.

Copyright (c) 2005, Erie Times-News, Pa.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

NWACQ, DAL, LCC, CAL,

Source: Erie Times-News

More News in this Category