Skybus Airlines estimated its liability at up to $3 million if it were to lose the suit, according to a court filing.
Skybus Airlines estimated its liability at up to $3 million if it were to lose the suit, according to a court filing.
The suit alleges that the Columbus-based airline violated the Workers' Adjustment and Retraining Notice Act last April by failing to give 60 days' advance notice of the mass layoff of about 365 employees in central Ohio.
The settlement must be approved by the bankruptcy court in the state of Delaware, said James E. Huggett, the Wilmington, Del.-based attorney for the plaintiffs.
The dollar amount should be disclosed in a court filing within three weeks, he said. In a filing earlier this year, the airline estimated its liability at $2.5 million to $3 million if it were to lose the case.
The payment would be distributed among former employees. Only seven former employees, including chief pilot Chris Grazel and maintenance and engineering chief Toney Quillen, formally opted out of the class-action suit, according to a filing this week.
Skybus also has agreed to allow essentially the entire $5.2 million claim from the Columbus Regional Airport Authority, which controls Port Columbus.
The amount will be reduced by a $600,000 overpayment by Skybus of passenger facility charges, which are fees levied by the airport to use for capital-improvement projects.
The resulting $4.6 million claim by the airport joins several thousand other unsecured general claims that Skybus has estimated it will be able to pay at a rate of 76 cents on the dollar, said David Whitaker, vice president of business development for the airport authority.
Skybus plans to wind down its bankruptcy proceeding in the next several weeks pending court approval.
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