DALLAS -- Legend Airlines filed for bankruptcy protection Dec. 3,
just eight months after it started flying out of Love Field in
Dallas.
The company is seeking new investors and insisted it will be
flying again soon. Meanwhile, thousands of passengers holding
Legend tickets scrambled to make new arrangements.
Legend set up a toll-free information line at (877) 453-4393
with updates on its status and who would honor its tickets. The
airline said commissions will be protected.
As of Dec. 4, Legend tickets were being honored by American,
America West, Continental and Continental Express, Delta (and its
regional carrier ASA), Frontier and National. Most of those
airlines, however, were honoring ticket on a standby basis
only.
About 90% of Legend ticket-holders used e-tickets, and they must
get a paper one before they can transfer it to another carrier.
"It is causing us headaches," said Tally Roberson, of AST
Connection/Carlson Wagonit Travel. "We had to rebook a couple of
clients. But [the other airlines] are not allowing us to rebook, so
the customers have to fly standby.
"Customers are not taking it well," he added. "Some were leaving
this week on advance purchase tickets. So they couldn't necessarily
go to another airline and purchase the new tickets at the same
price."
Tony Gorrell, co-owner of The Travel Team, said the agency was
having the most problems with people trying to get back home
because there was no one at the Legend counters to help them
out.
Both agents, however, lamented Legend's shutdown.
"We were promoting them quite heavily because clients were
getting so much bang for their buck," Gorrell said. They got a much
higher level of service, so it is shame to see [Legend] have such
difficulty."
Legend flew DC-9s reconfigured for 56 seats, to comply with the
seat limit on long-haul service at Love. The airline, catering to
business travelers, touted wide leather seats with nearly four feet
of leg room, no middle seats and free live TV.
Roberson, however, predicted it will be "very difficult" for
Legend to survive. "They have ruined their credibility with the
public and agents because most carriers that file for bankruptcy
don't recover."
Legend insisted that won't be the case this time.
"We are voluntarily and temporarily suspending scheduled service
while we secure capital," said T. Allan McArtor, Legend's president
and CEO. "Our intent is to resume flying as quickly as we can."
Added an airline spokeswoman: "We have complete faith that the
agencies are going to step up to the plate and support us" when the
airline gets back off the ground.
Legend blamed its difficulties on high fuel costs and three
years of legal fees. The carrier had launched service April 4 after
a three-year court battle against American and Dallas-Ft. Worth
airport, which wanted to keep Legend from flying out of Love
Field.
Legend's load factor reached 63% in September, but, as with most
start-ups, it was not turning a profit.
The airline positioned its bankruptcy filing as "the best way
for us to get our airline up and running as quickly as possible,"
because investors would not have to worry about immediate payment
of the airline's debts.
Michael Milligan contributed to this story.