Sun Country to defer half of employee payby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — Mendota Heights-based Sun Country Airlines says it must become independent of its parent company, Petters Group Worldwide.
Petters Group and its CEO, Tom Petters, are ensnared in a federal fraud investigation that forced Petters to resign.
Sun Country CEO Stan Gadek said the road to independence will require the airline to defer 50 percent of employees' pay through the end of the year.
Gadek said that's because the airline cannot tap Petters for more loans.
Hobbit Travel owner and minor Sun Country investor George Wozniak believes the airline could survive on its own.
"Fuel has been going down steadily. They made money this summer. And the fall is far better than anyone could have ever dreamed of. They are in a position to operate independently. I think the stars are aligned for that," Wozniak said.
Sun Country is not planning major layoffs among its 850 employees and does not anticipate schedule changes at this time.