Western Pacific Airlines in the USA ceased operations on 4 February, after efforts to emerge from Chapter 11 bankruptcy protection failed. United Airlines immediately offered to re-accommodate passengers holding WestPac tickets under a deal which would see the airline receiving up to 60% of revenues already paid to the failed carrier.
Competing Denver-based low-cost carrier Frontier Airlines had already offered to re-accommodate WestPac passengers in return for the carrier's operating certificate and the leases on two to four of its aircraft, allowing Frontier to begin services immediately in certain markets served by WestPac. With the United offer expected to prevail, Frontier dropped its proposal to re-accommodate WestPac passengers, but is still trying to acquire the aircraft leases.
WestPac's efforts to emerge from Chapter 11 failed when investor Smith Management withdrew its financing offer.
Source: Flight International
