Champion Air to Close Up Shop

Citing the high price of oil and other factors, charter airline Champion Air will cease flight operations on May 31. Champion is a partner of wholesaler Worry Free Vacations and regularly flies to Las Vegas and Cancun, Mexico.

“Unfortunately, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services,” said Champion President and CEO Lee Steele.

Compounding the challenges facing the airline was a growing trend in the marketplace away from charter carriers for certain types of flying, said Steele.

“Champion really has experienced a perfect storm that has simultaneously affected our cost structure, our ability to generate revenue and our ability to restructure ourselves,” Steele said. “Any one of those factors would be difficult. Collectively, they are insurmountable.

Champion, a flyer of Boeing 727s based in Bloomington, Minn., said it has adequate funds to continue operations and to settle all outstanding financial obligations, and that the airline’s 550 employees will continue to receive their pay and benefits through May 31.