One of the last of the 1980s startups is finally shutting its doors. Champion Air who began life as first First Air then MGM Grand Air has finally agreed to an orderly shutdown of its business. It will ground its 12 Boeing 727s and exit the business. While not a scheduled carrier - it was one of those airlines that filled a nice niche serving Las Vegas and the charter market. Obviously with only a small operation - it is not going to make a huge dent in the market.
the real killer for them was Allegiant grew too strong. Oil at over $100/pbl also was a killer for the old gas guzzlers.
So whose left in this space? Allegiant is clearly the star here. But OAS - Omni Air Services and the two surviving members of Global - World Airways and North American Air are surviving. The rest are pretty much all gone.
Is this an opportunity one may ask? I think the answer is yes for smart investors and careful seasoned management teams.
Cheers
Timothy
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