EDITORIAL

Reins removed from Six Flags - Gary Slade

When Six Flags, Inc. announced on June 13 that it had started reorganization proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware, it released itself of a giant weight that had held the company down since its aquisition by Premier Parks in 1998.

Between 1998 and 2005, the former Six Flags management team, led by then CEO Kieran Burke, converted what was once a well-oiled machine of eight theme park properties into a used and broken machine that had its parts scattered all the way to Europe. Wreckless spending on roller coasters and other mega thrill rides, along with the aquisition of parks of questionable size were aquired all in an effort to spike the stock price on Wall Street. When the stock started to fall, more aquistions were added to the line up, as was more debt.

Mark Shapiro, Six Flags CEO, said in a letter to all of its employees, “Unfortunately, we inherited an unsustainable $2.4 billion debt load from the previous management team. To put it into context, even if you have a record year and make approximately $275 million as we did last year, when you have to pay out approximately $175 million in interest expense on your debt and $100MM in park improvements to maintain and keep up with the business, that’s a balancing act you just can’t risk year in and year out. Furthermore, we have over $400 million of debt coming due within the next 12 months that cannot be refinanced in these financial markets.”

Not even Dan Snyder, the owner of the Washington Redskins who won control of Six Flags in 2005, or his right hand man Shapiro, could forsee how far gone the Six Flags system was on its infrastructure and quality of product that was beginning to drive guests away in record numbers.

Shapiro and company soon recognized the problem at hand and made immediate corrections. This publisher has had the opportunity to see many of the Six Flags U.S. parks since he took control. There is no question that under Shapiro’s watch the product is better, much better. Maintainance, operations and food service have all improved. Sponsorships have generated dollars that never existed before. His commitment to keeping a clean park, especially the restrooms, are unmatched by any other park chain. Never before have theme park restrooms smelled so good.

Six Flags is back on track to producing a product reminiscent of the chain’s glory years of the early 70s. And now, the first step to removing the weights that have handicapped Six Flags since the Premier puchased are being removed..

—Gary Slade

EDITORIAL

A great escape - Scott Rutherford

The Great Depression was without question a dismal period in modern world history. The frivolity and lightheartedness of the Roaring 20s – especially in the United States – ground to an abrupt halt as that playful decade ended and a suffocating shroud of despair settled over the nation.

Though hope and joy during this trying era may have been elusive, there was one sure way to alleviate that oppressive gloom – a visit to the local amusement park.

Ironically, the Great Depression dovetailed with one of the American amusement industry’s most prolific and creative periods.

Now referred to as the first Golden Age, it was a time when designers and engineers made almost quantum leaps in ride and attraction technology.

Like so many struggling businesses during that period, quite a few amusement parks failed and quietly faded into history. But the stronger ones that managed to survive all served the masses well. It was an easily attainable diversion that offered something for every member of the family, and it was just what the doctor ordered.

Most citizens in the 1930s did not have the luxury of excess disposable income. In fact, mere day-to-day survival took great effort. But park operators realized this and they strove to offer amusements, entertainment and food at an affordable price. Often, simply being on the park grounds, imbibing the jovial atmosphere was in itself restorative. It lifted ones spirits and allowed them for a brief time to find distraction from the troubles of everyday life.

Though the economic downturn we’re currently weathering may not be as dire as the early 20th century version, the human need for levity and escapism remains just as strong.

Perhaps even more so due to the fact that we’re at war and faced with the ever-present threat of fanatical terrorism on our own soil.

Just as our counterparts did back during the Great Depression, we find pleasure in the same type of escapism. Our amusement parks (as well as carnivals, waterparks, FECs, zoos and aquariums) may be more sophisticated, but these magical places continue to induce a sense of well-being and offer much-needed respite from the pressures of an increasingly complicated world.

—Scott Rutherford