Champion Air, a Bloomington-based charter carrier, announced early this afternoon that it will go out of business on May 31.
Champion is losing its two biggest customers this year: MLT Vacations, a subsidiary of Northwest Airlines, and the National Basketball Association. Management at the charter airline failed to attract new business to replace those large customers.
"Our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for services," Lee Steele, Champion's CEO, said today in a written statement.
Champion, which employs about 550 people, has been operating a fleet of three-engine Boeing 727s. Those planes take more fuel to operate than more modern aircraft.
The carrier was unable to attract investors to replace that 727 fleet.
Liz Fedor • 612-673-7709
