AccessAir To File for Chapter 11DAVID PITT , Associated Press
Nov. 29, 1999 4:19 PM ET
DES MOINES, Iowa (AP) _ Struggling startup airline AccessAir was expected to file for bankruptcy reorganization Monday, less than nine months after its first flight.
James Davis of Bettendorf, a member of the AccessAir board of directors, said the airline would file for Chapter 11 bankruptcy, which provides protection from creditors while companies reorganize their finances.
``It seemed to me to be the only way to reorganize going forward. I'm very disappointed in what has become necessary,'' Davis said.
In response to rising air fares out of the Des Moines International Airport, AccessAir took off Feb. 4 with service between Des Moines and Los Angeles and New York, with stops in the Quad Cities along the Iowa-Illinois border and in Peoria, Ill. A stop in Colorado Springs, Colo., was added later.
Davis said a meeting was held Nov. 23, and the board voted to authorize management to operate through the weekend so that passengers would not be stranded for the holiday.
``Obviously, there was no angel that showed up over the weekend. So, consequently, the management did what was authorized and that is apparently filing for Chapter 11 bankruptcy,'' he said.
Agents on AccessAir's reservation telephone line said all flights would be canceled as of midnight Monday for at least 30 days.
Rich Musal, acting AccessAir chief, and corporate attorney John Shors did not return repeated phone calls from The Associated Press.