IdleAire calls it quits
KNOXVILLE, Tenn. — IdleAire Inc., the company that provided truckstops with no-idle electrification, is pulling the plug on its operations after a nine-year run.
The company, which was saved from Chapter 11 in 2008 after being bought by a coalition of investment firms for $10 million, said it decided to close up shop when it couldn’t find a buyer for its assets.
"The company had made great strides toward profitability in the midst of a very challenging operating environment," the firm said in a statement. "We believe IdleAire had strong growth potential and was well positioned to capitalize on the recovering economy.
"Due to the economy, our customers had less freight to haul, resulting in reduced truck traffic and we have had extremely mild weather across the nation, reducing the demand for our climate control service. We continued to stay ahead of the financial issues and make adjustments as needed, but time and operating capital simply ran out."
loses its biggest player
IdleAire had been operating 131 locations in 34 states — mostly Pilot, Petro and Travel Centers of America facilities — and was looking to move into Canada, although expansion targets were repeatedly missed over the years.
The company provided truckstops with a ready supply of plug-in, 110-volt AC power.
Drivers pulled into a parking space, hooked up an apparatus to the window, and got temperature-controlled air, along with TV and Internet connections, movies, and electricity to run things like small space heaters, dehumidifiers, and small appliances for about $1.25 an hour — all without idling.
The problem though, is that even with government grants, it was terribly expensive to set up and maintain. It costs about $1 million to install the system at an average size travel center — about $15,000 per parking space.
On top of that, interest among truck drivers was hit and miss.
The company reported a $13.9 million loss in 2006, which escalated to a $67 million loss in 2007 before filing for bankruptcy in May 2008.
An entity made up of company bondholders bought the firm in hopes that it could return it to profitability.
Have your say
This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.