A10 - The Terrace Standard, Wednesday, September 20, 2006 Hawkair to change aircraft HAWKAIR HAS been told it soon needs to have different aircraft in place to continue its service. . “We've been strongly encouraged to do so,” Hawkair CEO Rod Hayward said last week of an appearance before Mr. Justice Grant Burn- yeat, one of a series since the regional air car- rier. went into bankruptcy protection nearly a year ago. The Sept. 7 appearance follows a request ‘made to the court by Maritime-based’ IMP Group that Hawkair return the two Dash 8- 100s it bought following months of unsuccess- ful attempts to renegotiate a reduced payment schedule. Hawkair went into bankruptcy protection last October citing high operating costs which _ included paying too much money for what it thought the: IMP aircraft, were worth. The coin- pany has | since cut costs and although it is in “a stable cash situation, the inability. to reach a deal with. IMP remained a problem as it is | ‘Hawkair’s largest creditor. Hayward said Hawkair has what he called letters of intent.to provide the financing for new ‘aircraft and that it has brokers looking for the planes:themselves.’ _ “The letters are ready to the point they have -. blanks where the serial numbers [of the aircraft] would go,” said Hayward. * ~ “Although Hawkair may have been content to a keep IMG’s two Dash 8s at the right price, what Ola CTs scanner it really needs is aircraft that can carry more passengers and freight, he said. That’s because recent federal weight restric- tions have cut back what IMG’s two older Dash 8s can carry in terms of passengers and cargo. In turn, this can affect Hawkair’s income stream on each flight. Mr. Justice Burnyeat has called Hawkair back to court Oct. 20’at which time he wants the company to submit either. signed leases or demonstrate significant progress in finding re- placements. Hayward said it was unfortunate IMP wants its planes back. In court submissions, IMP said it had another customer lined up for them. “What's interesting is that we’ve been pre- pared all along, way before we sought protec- tion last fall, to pay what IMP says it-will now get paid for them,” he said. “This-is another example of how IMP has been unreasonable and: stubborn.” Hayward said Hawkair has a broker,looking at five aircraft and that any two could fit the bill although not all would allow it to carry more passengers and freight than the MP ones now in use. . Hawkair owes IMP approximately $9 mil- tion but Beshr says the two Dash 8s are actually now worth less than half of.that amount. IMP would then dispose of the two air- — craft once they are returned, deduct that from the amount Hawkair owes and then. become an unsecured creditor for the. remaining amount. - Hawkair has’ been putting $60, 000 a month into the bank since early summer to act as a down payment for any lease arrangement it ne- gotiates. That was money the company had been : paying to IMP even though it did not have to because it was under creditor protection, said ’ Hayward. - “We were doing so in good faith. We didn’ t have to but we did it in hopes of being able to . get'a new deal (with IMP},” he said. . In the meantime, Hawkair is returning a third Dash-8 belonging to Field Aviation at that company’s request. Hawkair had been successful in renegotiat- . ing payments so, that it paid based on n the air- craft’s actual flying time. . It was used primarily over the summer to fly charters which was an attempt to expand the. company’ s income. But the Field aircraft was i in the air for more ° than budgeted in June because one of the IMP aircraft needed servicing. |. Hayward did not expect the loss of the Field Dash-8 to affect the company at least for now because it is trimming flights as part of its regu lar fall schedule change. Part of that. will involve combining Terrace and Prince Rupert stops with either trips down . to or up from Vancouver. | ay FRONTIERS AND |. SANCTUARIES | A Woman’s Life.in ; Holland and Canada MARIANNE BRANDIS Book Tour Events in Terrace, B.C. Wednesday, September 27, 2006, at 7:00 p.m.: Terrace Public Library, 4610 Park Avenue, Terrace, BC. “Legacy of Terrace: how nine years of farming on the Eby Road shaped ‘he life and writing of Madzy Brandis and her family.” Please phone 638-8177 for details. For more info, visit www. mariannebrandis.ca MARIANECL RAMEY Sponsors Marianne is most appreciative of the generous hospitality of the Coast Inn of . the West for three nights accommodation, a donation from Ms. Anna Beddie of Misty River Books, and the space provided by the Terrace Public Library.. McGill-Queen’ ‘s University Press _ eet Meth, Vea? RO RSUR EE ror) PEN O EEC orrses PRS Se = Royal LePage Terrace’ Congratulates — Rachel Duriez Success on attaining “Platinum Award” — For the month of August. Royal LePage Terrace _ Our Growth in sales means many satisfied home Buyers & l lers in Terrace & Kitimat Le ve Moved - 4724 Lazelle Avenue ~~ ROYAL LEPAGE Dewan TERRACE . Behind McDonald's on Lazelle 4. fey RORSAON somerecen OR ANNEE mearmeents TTPO Resescccuacil wnanstn reer “? DOGRREEG memecemcs §QURRESR wersrxnes FUN RN EE caesar: TTT ae "given a second life THE FORMER CT scan device at Mills Memorial Hospital .. may be 13 years old and not state of the art any longer, but it _ will have another life. , It’s been bought by Tandem Medical Equipment of New York, which specializes in used radiology equipment, and Thanks | Thanks © will either be sold to another medical facility or used as parts: to keep another one running: . “There’s a big market for used médical equipment,” Ian Halpert who founded Tandem three years ago: “For some people it may be all they:can afford. Or it - might go to a service company. In essence they will use it ~ for parts to keep another machine going.” : ~ . Tandem’s customers are spread around the world and it" _ first ensures that what it buys and then resells is in proper ‘ working order. Tandem paid less than $10, 000 for. the old CT machine, far less than its $610,000 purchase price back in 1993. 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