TERRACE STANDARD | Business RE IEW “hog Hawkair seeks to restructure The Terrace Standard, | Wednesday, vw 2005 - A15 y ; Beginners - Thursday, October 20th : 7:00 p.m. - 8:30 p.m. ‘Advanced - - Monday, October 17th 8:00 p.m. - 9:30 p.m. Instructor: Krystyna Moss For information, call Parks & Rec. at 6 15-3000 or 615-3030 while under creditor protection 4 700 MUCH expansion taking place too fast and : : rising fuel costs are being blamed for local airline — : Hawkair being placed under creditor protection ‘ Jast week. . W ; The protection comes under the Companies ‘ Creditors Arrangement Act (CCAA), reserved for ‘lion. : ’ It allows companies to reorganize their finane- ‘es without fear, at least temporarily, of more dire consequences from those who have unpaid bills. Company officials say they will work to pay will honour tickets purchased and will pay for any goods and services purchased since the date of the filing. Officials say the downward spiral began a year ago but accelerated since early August. force by late summer. Approximately five of the layoffs took place at its main Terrace base, company chief executive officer Rod Hayward said last week. per cent with the wage component being reduced from $5 million to $3.2 million a year. “The majority of the wage savings came from the layoffs,” said Hayward but he did add there have been wage cuts as well. But the biggest cost is financing the purchase price of the three Dash 8-100 aircraft it has kept. . Two leased aircraft have since been returned. Hayward said the financing charges for the three aircraft are now greater than what they are -worth, and that his company can no longer afford to pay the cost. “Put it this way, the value of the aircraft has dropped by 75 per cent ~ from $6 million to $2, million,” he said. health of airlines, generally putting the industry, of the © “ companies who have debts of more than $5 mil- - off existing debt, will continue to pay employees, It cut routes into Alberta and Fort Nelson in the | spring and cut nearly 40 of its 130-strong work-. He said the company has cut expenses by 38 . That drop in value is attributed to higher fuel costs and other factors affecting the financial TERRACE COMMUNITY BAND Sunday, October 16, 2005 10:00 a.m. in the band room at ) Skeena Jr. Secondary:School ~ 3411 Munroe Street, Terrace ff nated one of its four planes from its fleet. Pellet Stove Repairs 635-3656 Home 5137 Agar Ave., Terrace, B.C. V8G Hg Wayne, Kim & Matt 615-7298 Cell 635-3654 Fax . OPEN 7 DAYS A WEEK: AN AIRPORT employee: directs a Hawkair plane into the arrivals area. Hawkalr has elimi- 4 S FILE PHOTO into the doldrums. Hayward did note that Air Canada also went into bankruptcy protection and negotiated lower rates for its aircraft. It is now out from under pro- lection and doing well. . Hawkair’s main creditors, are the companies who loaned it the money to buy the aircraft and. they are first on the renegotiating list. The level of success in this area will drive the airline’s go forward plan, including a determina- tion of the equity that will re remain for local i inves- tors. From a start in Sept. 2000 by flying just from Terrace to Vancouver with only one aircraft, Hawkair quickly began to _ expand by” adding jt ANNUAL Coast Inn of the West TERRACE PONY CLUB Gx GENERAL = MEETING _ Tuesday, October 25, 2005, 7p.m. es nese 8 SIAus eenveenne — Community Advisory Committee. Avenue (behind Interconnect). A Program of Terrace & District Community Services Society a | Everyone Welcome! } | LS Advisory Committee for Northwest Addiction Services Northwest Addiction Services invites community members interested in supporting our programs to reduce harmful involvement with alcohol, drugs and problem gambling to attend an initial meeting for the purpose of forming a The meeting. will take place on Monday, October 17 at 7:30 PM at Youth Opportunities, 4530 Lakelse 3110 KALUM ST. ° 635-3779 : Monday - Friday 8:30am-5:00pm Saturday 10:00am-6:00pm Encorp Pacific (Canada) ‘ www.encorp.ca 1 -800-330-9767 | GOT BOTTLES? ‘| TERRACE RETURN-IT CENTRE ll routes and aircraft. It added Prince Rupert and Smithers, but pulled out from the latter location when. traffic failed to meet projections. At one time it also flew to Vic- toria. Hayward said the business model became one of adding leased aircraft to the. fleet because they were cheaper than the ones they had bought. - Blending those costs made it cheaper to fly each aircraft overall, but that model also required them’ to be used on profitable routes. : The plan ultimately failed, putting the com- » pany on its present path’ . Hayward said the company will survive and - thrive. e & Earn 7% in Year 5. “Ina Class of fts Own * Invest as little as $100 * Fully Cashable N CREDIT UNIO Terrace 638-7822 Prince Rupert 627-7571 NORTHERN SAVINGS. Dicer the Diblevonce! . Queen Charlotte City N Masset 559-4407 626-523! At LARGE Can't attend Power Smart Events? -Lower value, mail-in coupons for these energy-efficient products are available online and at participating retailers. *Customers can turn in a maximum of three halogen torchieres and three old holiday light strings. Offer applicable to BC Hydro and New Westminster Electrical Utility customers only. 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