SJI is established by former Key Airlines President P. Thomas Kolfen-bach at Largo, Florida, in the spring of 1993 to offer charter passenger and inclusive-tour flights to destinations throughout North America with a fleet of two leased McDonnell Douglas MD-81s.
A DC-9-31, once operated by Eastern Air Lines, is put into service during October over an initial route from Newark to Tampa/St. Petersburg and Fort Lauderdale. Only $17,000 in income is realized before year’s end, along with $19,000 in expenses. Losses are $2,000, on both the operating and net lines.
In June 1994, Dallas (DFW) is added to the route system, with connecting service to Los Angeles via Long Beach.
The leased fleet is considerably increased in 1995; added are two DC-9-51s and another DC-9-31. Flights between Los Angeles/Long Beach and Las Vegas and Seattle commence on October 1. On November 15, new service is inaugurated between Long Angeles/Long Beach and Newark and Houston (IAH).
Enplanements for the first full year total 486,000. Revenues well exceed costs and there are good profits: $8.79 million (operating) and $6.56 million (net).
Michigan housing developer John Mansour purchases the company at the beginning of 1996. After announcing plans to transfer the airline to his hometown of Flint, the new owner relents. Former American Airlines executive David Banmiller is hired to succeed Mr. Kolfenbach as president and he, too, announces growth plans. Unfortunately, Sun Jet, like a number of smaller carriers, will be badly affected by the May crash of Valujet Airlines Flight 592 into the Everglades.
Sun Jet now falls behind in its payments to vendors and to former owner Kolfenbach. Meanwhile, larger airlines offer deep discount fares in an effort to attract riders to their supposedly safer operations.
The two DC-9-31s are withdrawn as passenger boardings slide 2.4% to 622,000. Operating income falls 7% to $59.28 million while expenses are up 9% to $59.87 million. The previous year’s profits are turned into an operating loss of $599,000 and a net loss of $532,000.
The leased fleet in 1997 includes two DC-9-51s and two MD-81s. During the first quarter, Sun Jet, which has been unable to raise additional capital, abandons the scheduled charter market and returns to a more traditional, on-demand, nonscheduled service.
During its takeoff from Dallas (DFW) on June 16, a DC-9-51’s main landing gear tire explodes; pieces of rubber are ingested into an engine causing major damage and cancellation of the departure.
In deep trouble, Chairman Mansour indicates on June 17 that he is seeking a merger partner. Recent engine problems have taken two of Sun Jet’s four planes out of service and the company reports itself $5 million in debt.
On June 18, the Largo-based discount air carrier grounds its planes, lays off most of its 145 employees and prepares to file for Chapter IX protection the following Monday. Passengers are switched to flights by Detroit-based Spirit Air. That company operates Sun Jet’s flights to Orlando, St. Petersburg, Fort Lauderdale, and Newark.
The carrier keeps its operating certificate active with the government and seeks a rescue package that will allow it to resume operations.
Prior to its shutdown, the company flies a total of 248,000 passengers. Revenues have dropped 73.8% to $15.54 million and expenses have fallen 67.3% to $19.59 million. The operating loss is $4.5 million, while a net $4.09-million loss is also suffered.
Aviation Industries Corporation steps before the U. S. Bankruptcy Court on February 12, 1998 and wins permission to provide debtor-inpossession financing. Although Chairman Mansour and his management team are temporarily left in place, AIC retains AIBC Investment Services Corp. to advise it as it prepares to recall workers, expedite revalidation of the carrier’s fitness certificate with the DOT, and resume passenger charters.
A reorganization plan is filed with the court by March 20. When it becomes a reality, the airline will fly under a new marketing name.
The DOT finds Sun Jet fit to resume service during the first quarter of 1999. Flights resume from a base at St. Petersburg with a single DC-932 and under the name Southeast Airlines (6).
World History
