Command Security Corporation Discloses Estimated Exposure to Delta and Northwest Airline Bankruptcies

Strategic Insights -

Command Security Corporation has disclosed an estimated exposure of $1.1 million to Delta Air Lines and Northwest Airlines, both of which have filed for Chapter 11 bankruptcy protection. The company provides aviation and security services to these airlines through its Aviation Safeguards division and expects to continue providing services in the normal course of business. Despite the estimated exposure, Command Security's management team believes the company has turned a corner and will operate profitably in the second half of fiscal 2006. The company is exploring opportunities to provide additional services to the airlines in the future.

Key Takeaways:

  • Command Security Corporation has estimated exposure of $1.1 million to Delta Air Lines and Northwest Airlines due to their bankruptcy filings.
  • The company provides aviation and security services to these airlines through its Aviation Safeguards division and expects to continue providing services.
  • Management anticipates that the provision for bad debts will reduce the company's second fiscal quarter results from net earnings to a net loss.
  • The company is exploring opportunities to provide additional services to the airlines in the future.
  • Command Security's management team believes the company has turned a corner and will operate profitably in the second half of fiscal 2006.

Statistics:

  • Estimated exposure to Delta Air Lines and Northwest Airlines: $1.1 million.
  • Range of provision for bad debts: $0.8 to $1.1 million.
  • Delta Air Lines and Northwest Airlines filed for Chapter 11 bankruptcy protection.
  • Command Security Corporation provides services to airlines through its Aviation Safeguards division.
  • The company has offices in 12 states: California, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Pennsylvania.

Sources:

  • "Command Security Corporation Discloses Estimated Exposure to Delta and Northwest Airline Bankruptcies" original press release.