JS>     Three-year-old low-fare carrier halts flights, says it hopes to
JS> resume soon
I hope so also.  If it waits too long the Airline Transportation System 
might regain it's composure and return to the world's best Air 
Transportation system.
JS>     August 28,1997: 8:14 p.m.  COLUMBIA, S.C., - Air South Airlines
JS> Inc. filed for Chapter 11 bankruptcy protection Thursday and ceased
JS> operations -- at least temporarily -- after three years in the air,
JS> the low-fare carrier said.
JS>     "We regret to advise you that Air South has temporarily sus-
JS> pended all operations and has sought protection under Chapter 11 of
JS> the U.S. Bankruptcy Code," said an answering machine message at the
JS> airline's Columbia headquarters.
JS>     The company said it stopped flying Thursday afternoon, when it
JS> made its bankruptcy filing in federal court in Columbia.
The reason is that it filed for Bankruptcy is that it tried to steal 
business away from reputable first rate carriers and it backfired.  They 
didn't charge the rate that was necessary for them to stay in business 
but they somehow figured in the back of their minds that the Government 
would protect them and maybe even give them a Supplement to help them 
bring down a successful major carrier.  The Major Carrier would then go 
out of business and they would be the leader and make billions for their 
opportunist investors that had it all figured out.  
JS>     The tape advised customers to contact credit card companies or
JS> travel agents about tickets they had purchased, or to write to the
JS> company after Sept. 4.
JS>     "We sincerely apologize for the inconvenience this has caused
JS> you, and thank you for your past support," the tape said. "We hope
JS> to resume operations in the near future.
This means that if we can get a bailout or some protection or Government 
support we can take on the major airlines.
JS>     Company officials weren't available to provide further details.
This is because they don't have any details.  They tried and failed.  
What can you say?
JS>     According to local media reports, the company laid off more than
JS> 700 employees because it couldn't meet its payroll.
JS>     Air South flew to Chicago, New York, Atlanta, Miami, Jackson-
JS> ville, Fla.; Norfolk, Va.; and Myrtle Beach, Charleston and the
JS> Greenville-Spartanburg Airport in South Carolina.
This is an area that they thought they could get to Delta and take away 
their business plus the leftovers from Eastern.
JS>     The airline began service in August 1994 with two leased Boeing
JS> 737-200 jetliners and was flying seven 737-200s when it declared
JS> bankruptcy.
JS>     After the bankruptcy was announced, investment bank Hambrecht &
JS> Quist Group said it expects to take an after-tax charge against
JS> earnings in its fourth quarter of about $5.5 million, or 22 cents a
JS> share, related to its investment in the airline.
Now here is the important part.  Somebody, somewhere is going to profit 
in some way from this venture.  The poor Employees are the ones that 
will suffer.
JS>     According to a July report in The State newspaper of Columbia,
JS> Hambrecht had invested $25 million in the airline. The newspaper
JS> also said South Carolina had helped to capitalize the company with
JS> a $12 million state-backed loan, on which it renegotiated interest
JS> payments last year.
Hambrecht had $25 million laying around that they thought they could cut 
someone with.  They tried and failed.  The Airline Deregulation Act was 
the largest single factor in destroying our tremendous Airline network 
and these are the results.  OPPORTUNIST.
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 X CMPQwk 1.4 #1684 X "She's still smoking Harry, throw out sompin else".
--- Maximus/2 3.01
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