Missed Payroll, But Still Flying
TAMPA, Fla. (AP) _ Provincetown-Boston Airlines, an East Coast regional carrier in bankruptcy proceedings, missed a payroll for the first time in its 36-year-old history but said it will make a 30 percent payment Friday.
The payroll problem was disclosed Wednesday by the Naples-based airline, but it said there are no immediate plans to halt flights. Airline officials were not reachable by telephone this morning.
Airline offical Thomas Barber II was quoted as saying by today’s edition of the Tampa Tribune that PBA may soon sign an agreement with an unidentified major investor, otherwise the 36-year-old carrier might suspend operations.
″We’re on a very tight working capital situation. We were not in a position to pay that entire payroll,″ Barber was quoted as saying.
PBA, with 650 employees, has a payroll of $600,000 every two weeks. PBA said the workers ″are responding to the payroll delay with their usual dedication and patience.″
In an effort to increase boardings, PBA last week announced fare cuts of 14 percent to 50 percent through Feb. 6, and Barber said this is helping ease the situation.
PBA has been struggling through Chapter 11 reorganizational proceedings in federal bankruptcy court since March while working on a planto pay $18 million in bank loans.
Founded on Cape Cod in 1950, the airline serves cities in New England and the South. It was the largest U.S. commuter airline about a year ago.