Employees at Sun Country got a love letter from their CEO,Stan Gadek, saying 50% of their paychecks will have to be deferred until 2009. They can't get a loan to cover expenses but its not due to the credit crunch - it's due to a federal investigation of their parent company The Petters Group
Sun Country Airlines is my favorite airlines-I try to fly it whenever I can ( Southwest does not come to Minneapolis or they would be my favorite airlines. Currently I'm in Seattle and I almost always fly Sun Country when I come here but this time because of scheduling, I hopped on a NWA flight. Can Sun Country survive both the credit crunch and The Petters Group Fraud investigation?
The airlines's two largest unions which represent the pilots and flight attendants haven't endorsed the plan.
According to an FBI affidavit filed to obtain the nine search warrants, Petters and a handful of associates have conducted a decadelong fraud that offered investment opportunities in funds backed by liquidated merchandise that could be sold for a profit. But the government alleges that the purchase and sales orders generated by the funds were fictitious.
By some estimates, the fraud is in the billions of dollars, according to the search warrant affidavit.