CARLSBAD — California Pacific Airlines returns to the skies.
CP Air founder Ted Vallas, 97, told The Coast News the airline will restructure its executive team and inject millions of dollars in capital to re-launch service.
The company will resume flights from Carlsbad’s Palomar-McClellan Airport to Phoenix-Gateway, Denver, San Jose, Reno, Tucson, Las Vegas and Sacramento, according to Vallas.
“We’ll actually be flying in less than three months,” said TG Vallas, Ted Vallas’ nephew and secretary of the Board of Directors. “We’re going to do it with a fleet of aircraft, so if there’s any mechanical issues we’ll have spare aircraft to put online to accommodate the routes.”
The company expects up to a $38 million infusion with a $12 million line of credit.
Also, TG Vallas said the company will purchase two factory refurbished 50-seat Embraer 145 jets and lease at least two others — one 50-seater and a 30-seat Embraer 135.
CP Air is also expected to remain out of the charter and government services businesses.
In addition, Ted Vallas said the company will pay off all its debts, which are at least $10 million before resuming service.
According to a letter to Vallas from the U.S. Department of Transportation, CP Air will be able to retain its FAA certificate through Jan 16, 2020 because CP Air voluntarily suspended operations on Jan. 16, 2019.
“There will be a combination of several of the furloughed employees coming back on board as well as new executives,” Vallas said.
Ted Vallas purchased Aerodynamics, Inc. (ADI) one year ago due to difficulties obtaining proper FAA certification and other approvals from San Diego County and the federal government.
ADI was a regional airline with a government contract for Essential Air Services (EAS) from Denver to Pierre and Watertown, S.D. CP Air suspended its EAS contract in December.
In mid-January, CP Air furloughed all remaining employees in Carlsbad and other locations including Denver and Kennesaw, Ga., the former headquarters of ADI.
The ticketing system in Denver was compromised after the collapse of Great Lakes airline, which shared its system with CP Air. According to four former employees, an investor took over processing credit cards for CP Air flights in the Denver system in mid-December.
It is not clear if any money was siphoned away from CP Air’s accounts from those transactions, and customer credit card statements reveals their transactions were processed by El Paso Oil.
Note: Jim Kydd, owner of The Coast News, is an investor with CP Air.