DENVER -- Western Pacific ceased operations on Feb. 4 and shut
all its locations after investor Smith Management Co. pulled out of
a rescue plan. The carrier had been operating under Chapter 11
bankruptcy protection for about four months.
The Airlines Reporting Corp. said it will not process any travel
agent transactions, including refunds, on Western Pacific Airlines
contained in the sales report for the week ending Feb. 8. ARC said
if the transactions are included in the sales report they will be
rejected and returned to the agent.
United Airlines agreed to accommodate ticketed Western Pacific
passengers who had paid by credit card for departures the day of
and the day after the shutdown. Callers to Western Pacific's
reservations line heard a recording that advised them not to call
United Airlines; Western Pacific would contact its ticket holders,
it said.
A more comprehensive deal, in which United would accommodate all
ticketed Western Pacific passengers for travel through Oct. 1, was
awaiting bankruptcy court approval. If that deal is approved,
travel agents will be able to rebook Western Pacific passengers on
United, but they will not reissue tickets; passengers will go to
the airport on the day of departure with their WestPac tickets, and
no money will change hands.
However, a source close to the negotiations said that Smith
Management Co. was balking at the provision to honor all tickets,
rather than just those purchased by credit card.
Not only did some passengers pay cash for their tickets, but
about $22 million worth of Western Pacific vouchers have been
purchased in a promotion with a supermarket chain, King Super.
The source said Smith, which already had invested $23 million in
the ailing carrier, did not want to pay another carrier additional
funds for cash passengers.
Western Pacific's demise leaves Frontier to wage the low-fare
battle with Shuttle by United at Denver.
Frontier has about 3% to 4% of the Denver market; Western
Pacific had about 5%, and United has 67% to 70%.
Frontier had offered to accommodate WestPac passengers as well,
but it wanted to take over leases on two WestPac aircraft as part
of the deal.
A Frontier spokesman said it needed those aircraft to cover
WestPac's entire route system.