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.
6 comments
Steve Puterski: Wasn’t one the owners of Coast News an investor in CP Air?
How believable is all this when CP Air can’t even afford to renew their domain name (http://mycpair.com)?
Money was siphoned by the oil company who was not an investor. He interfered with credit card transactions without authorization. Was warned to stop and did it again. He holds funds to this day as ransom for control over the airline. Total scumbag who held on to company funds and meddled with the company because he wast trusted. This guy even acted as a savior and loaned employee advancement money then forgave those loans and he was hailed. What people didn’t know was that the money he was loaning was not his own but money he siphoned without authorization.
Vallas owes employees paychexks drom aufust oceober ,2 in decmber and at least one in January i rwally hope the debts include employees salary as rhis caused people to loose medical care rhat was taken from paychecks befinng auguat employees had insurance taken out of paychecks to find out their insurance was cancelled and are getring bills for thei medical care. I hope that Mr Vallas takes that and pays for the medical care as employees were not notified of lack of insurance and still had mo ey taken kut of paychecks where did thos money go?
Employees came to work dis their jobs even though they qere not paid Mr valles owes wmployees 6 paychecks or 3 months pay not 1 month.
Thank you
And you believe this??? From a person who has lied repeatedly for years about this? And you print this without any verification or other sources. You are HACKS
The headline seems a bit premature.
I was thinking the same thing. Should read “CPA is planning to maybe return to the skies if they can get their act together possibly”
Comments are closed.