Winnipeg Airport seizes planes to collect on debt

[midwingcrisis]

The Winnipeg Airport Authority has seized two of a failed charter airline’s planes in an effort to collect almost a half million dollars of debt.

WAA CEO Barry Rempel said two Skyservice Boeing 757 jets, which can carry up to 200 people each, were seized March 31 at Richardson International Airport when the debt-ridden vacation charter company was placed into receivership by an Ontario court.

Rempel said the seizure came after filing a claim in provincial court for $451,491 under the Airport Miscellaneous Matters Act.

“All we’re doing by seizing the aircraft is protecting our position as a creditor,” he said Tuesday.

Rempel said the outstanding money is almost evenly split between unpaid landing and terminal fees and facility improvement fees which airlines collect and then turn over to airports.

Regardless of an airline’s financial state, airports cannot refuse to allow carriers from using their facilities.

Rempel is hopeful the WAA will recoup its money from Skyservice’s receivers.

“The aircraft are worth an awful lot more than what we’re owed,” he said. “The aircraft owner needs to go and deploy those assets in a meaningful way and we’re not trying to stop them from doing their business.”

Rempel said in previous failures — including those of Jetsgo, Canada 3000 and Zoom Airlines — outstanding improvement fees have been promptly paid by receivers.

Skyservice’s troubles stemmed from a variety of industry pressures including increased capacity of domestic carriers, ownership changes and mergers that saw tour operators team up with other flight companies.

“I wish I could say this wasn’t a routine event, but it seems to be getting that way,” Rempel said.

Rempel said the WAA has not actually seized planes before but has been party to other airport authorities’ seizures to secure payment of debts, most recently in the failure of Zoom.

[sapper6fd]

I find it hard to believe they needed to repo 2 - TWO 757 Jets for a 1/2 million dollar debt. I understandd their owed money, but what gives them the right to repo two aircraft worth millions of dollars to cover a debt worth less than 1/6 the value of one of thosee jets?

[warner]

I find it hard to believe they needed to repo 2 - TWO 757 Jets for a 1/2 million dollar debt. I understandd their owed money, but what gives them the right to repo two aircraft worth millions of dollars to cover a debt worth less than 1/6 the value of one of thosee jets?

as you are an obvious newcomer to the world of aviation...........its called doing business.......

[imarai]

The Winnipeg AOA has most likely sent overdue account notices, and a "This is your final notice", so, yeah, they can seize the aircraft. I recall Texas boots being installed on Navajos, Citations and KingAirs for unpaid landing fees at Edmonton's Municipal airport in the 1980s . Ever hear of a mechanics lien ?

[tsgas]

Good for YWG. Dead beats should pay their bills if not then the rest of us are stuck paying higher user fees.

[208Drvr]

I find it hard to believe they needed to repo 2 - TWO 757 Jets for a 1/2 million dollar debt. I understandd their owed money, but what gives them the right to repo two aircraft worth millions of dollars to cover a debt worth less than 1/6 the value of one of thosee jets?

as you are an obvious newcomer to the world of aviation...........its called doing business.......

If there was only one Skyservice jets there they would have seized the one, but hell there are two here, so why not. They will pay even faster.

[CL-Skadoo!]

Are they not leased aircraft anyway?

[midwingcrisis]

The reason for the post was to outline the laws that allow Airports to seize aircraft above and beyond the "normal" unsecured creditor. THE AIRPORT TRANSFER ACTis the remedy. It is above distrain procedures, not only are they allowed (court process), but able to charge back to the receiver fully for their costs in securing, parking and insuring such. Who has lost out? ...every unsecured creditor. It allows even airports without assets parked at their facility to seize at other locations eg: CYOW----CYYZ.!!!

BTW FYI.....SS was current at YWG...less than 30 days for the most part..even with a deposit on record....29 rotations @ YWG in March 2010= $ 200,000+ in fees and counting

[flyinhigh]

I find it hard to believe they needed to repo 2 - TWO 757 Jets for a 1/2 million dollar debt. I understandd their owed money, but what gives them the right to repo two aircraft worth millions of dollars to cover a debt worth less than 1/6 the value of one of thosee jets?

Hey, its just like a lien on a car/ a house. Your bill maybe only 500 bucks but a mechanic/contractor can put a lien on your car/house. In the event of a car you cannot touch the car till you pay the bill. Yes your bill is 500 but the car is 45000 so why do it, just business.

By seizing these to aircraft, just say worth 30 mil for arugement sake. The leasor that owners the aircraft are going to pay the bill right away(I mean 29.5 mil difference,) on behalf of the airline to make sure they get there aircraft back to either sell, or re-lease and get the money the aircraft is truely worth.

[trey kule]

Good for YWG. Dead beats should pay their bills if not then the rest of us are stuck paying higher user fees.


Yes, and deadbeat, greedy municipal governments should not be allowed to charge them. And spineless users should step up to plate and contest them rather than accepting being stuck with them.

My apologies for the hijack.

[The Old Fogducker]

Yup .... they should just be able to use an airport for free ... run up a bunch of goodly-sized bills and then stiff 'em for it.

After all, they are just a bunch of nice people trying to get along in aviation, so what's the big deal over a measely quarter million? What would the AA do with it .... stupid stuff like plowing runways, making parking lots, paying for runway lights ... senseless stuff like that.

OFD

[trey kule]

they should just be able to use an airport for free

Wish it was so. But last time I checked, every time we put fuel in an aircraft we are paying taxes. The companies who provide the services pay taxes. And there are some fees out there..think NavCan, the we are not a government agency corporation.

When was the last time you paid a fee to drive your car on a municipal road?

None of its free. But to collect taxes and then pretend that users should pay is unfair to say the least. And of course we all want those airport improvement fees so they can put in more $20 an /hr parking spots and build maganificant pieces of architectual artwork for the municipalities.

I would be much more benign about this if you can demonstate to me where our fuel taxes actually go towards aviation...last time I checked they went into that big pot of general revenues.

I shall end my rant and let the original topic go on

[flyinthebug]

Sometimes in business, this is the only way to get a customers attention.
Back a few years ago, we had entered into a contract with a lodge/travel agency to move all their American Fishermen from YWG and YXE north. After we had repeatedly asked for payment as per the contract agreement, and were ignored, I gave a final ultimatum (sp)? and that was pay us or the plane stops in its tracks. The cheque didnt show up within the hour as promised, so I called one of my pilots on his cell and told him to hold the flight. When the plane with 11 passengers started to taxi back to the ramp.. My phone rang and a credit card payment was made within 10 mins.
Maybe I didnt get this companies business the next year (nor did I want it), but we were paid for the service we provided and sometimes, ceasing an airplane or stopping one in its tracks.. tends to be the only way to motivate the customer to pay. As has been pointed out, try taking your car in for 500$ worth of repairs. Then dont pay the mechanic and see how quickly they suddenly have control of your 50K car over a 500$ debt. Its called doing business.

[rigpiggy]

I have a friend whose law practice almost entirely depends upon seizing freighters for delinquent debts. Ever wonder how much an hour missing the tide will cost. most of his debt claim are comparatively small 50-150k. It is amazing how quick they pay.