Aug 31, 2006 7:20 am US/Central
Petters: Sun Country Is 1st In Aviation Expansion
Minnetonka, Minn. (AP) ―
Businessman Tom Petters says the pending acquisition of Sun Country Airlines is just the first step for Petters Aviation, which he hopes to build on with other aviation projects.
Petters has hired former Sun Country executive Jay Salmen as president of Petters Aviation, and said Wednesday that he aims to have the company provide in-flight entertainment systems, Internet access and other technology and services to major airlines.
After cutting services in recent years to reduce costs, Petters Aviation hopes to provide ways to help carriers build customer loyalty.
"There is a push to consolidate services and to look to third-party providers for services that were otherwise traditionally done by commercial and general aviation operators," Salmen said. Petters Aviation is positioning itself to provide those services, he said.
"Before Sun Country ever came up, I was working on a deal to do marketing initiatives on airplanes," Petters told the Star Tribune.
Petters Group Worldwide, with more than a dozen companies, has the ability to expand into product lines serving major airlines and general aviation, said Petters, who is chairman and CEO.
"We're in the technology business," he said, explaining that Petters Aviation may look for ways to help airlines generate more revenue through in-flight offerings.
Sun Country's shareholders agreed in July to sell the Mendota Heights-based carrier to Petters and Whitebox Advisors, a private equity group in the Twin Cities. The airline will keep the Sun Country name.
Sun Country CEO Shaun Nugent said the parties are waiting for the U.S. Department of Transportation to approve transfer of the airline's operating certificate to the new ownership group.
Petters said Nugent will remain CEO of the airline.
Salmen, who had been a sun Country executive since early 2002, left the carrier in April and was named president of Petters Aviation earlier this month. He will focus on ventures beyond Sun Country.
Meanwhile, Nugent said Sun Country is gearing up for the busy winter season, when it expands its schedule to warm-weather cities. Sun Country will operate 13 Boeing 737-800s this winter, one more than last season.
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Sun Country Airlines started operating in 1982, with 33 employees.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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