Carlsbad CA— California Pacific Airlines is taxiing toward the end of the runway and is preparing for takeoff–again.
According to Ted Vallas, founder of the Carlsbad-based airline, three Embraer ERJ-145, 50-passengerjet aircraft will be delivered to Palomar Airport later this summer. In the meantime, Vallas said a number of significant changes are being made, including future ownership of the company.
NewCo acquisition group is expected to acquire CPAir. When the deal is consummated, NewCo will appoint a new chairman of the board of California Pacific Airlines, with Vallas stepping aside.
“I’ve put my heart and soul, as well as most of my money, into CPAir since 2010. At 98, I figure it’s time to let fresh faces take over. When the deal is completed it will include assumption of all debt, transfer of stock and cash considerations. CPAir began flying in 2018, a regular schedule from McClellan-Palomar Airport serving San Jose, Reno, Phoenix and Las Vegas. Late last year, an unfortunate series of mechanical, financial and staffing problems arose causing a temporary cessation of operations.
Vallas has “regrouped” his organization and is seeking a raise of up to $50 million in operating capital. Initial investment is expecting to between $38 to $50 million.
“While we are firming up our operating capital with NewCo, we’re going to need a ‘bridge loan’to get those three new planes into the air,” Vallas explained.
“My vision has always been for CPAir to be a North County ‘community airline.’ I’d encourage North County investors, businesses, and even government officials to back our efforts with a temporary infusion of capital.”
Vallas stressed we need a jump start of local money for up to a two-year period as the investment group(s) complete their due-diligence.