Miami Air International Bankrupt

Yesterday evening Miami air international files for chapter 11 bankruptcy. The airline has a fleet of Six leased Boeing 737 and the company leaders are on red alert to get then back.

I got this information from a lawyer who works for a leasing company who leased airplanes to them so I can’t show the news article because you need a subscription to look at it.

4 Likes

Here’s an article.

Mar 26, 2020, 2:41pm EDT

A Miami-based charter airline specializing in large group travel filed for Chapter 11 bankruptcy protection Tuesday in U.S. Bankruptcy Court for the Southern District of Florida.
Miami Air International incorporated in 1990, has a fleet of six Boeing 737-800 aircraft chartered for group travel, with clients including sports teams and conference groups. Due to the coronavirus pandemic, business in recent weeks has “ground to a halt,” according to the recently filed bankruptcy declaration.
As of Feb. 29, the company had $24.1 million in assets and $24.7 million in liabilities. According to the filing, Miami Air had $111.8 million in operating revenue last year.
According to court documents, the airline is currently only scheduled to fly certain flights for the U.S. military under the Civil Reserve Air Fleet (CRAF) program. All other bookings have been canceled as conferences, performances and sporting events nationwide have been canceled for social distancing purposes.
“These are unprecedented financial times for all sectors of the global economy,” the filing stated. “However, by the filing this Chapter 11 case, Miami Air is hopeful that its business operations will follow the same trajectory as happened in the wake of previous global disruptions, such as the terrorist attacks of September 11, or the global financial crisis of 2007-09, and revert to normal in the near future.”
Miami Air International employed 341 people. The company is laying off 173 employees, effective Friday. Some of the layoffs are expected to be temporary.
Additionally, the company requested to reject three of its six current leases for Boeing aircraft. According to the filing, that would save the company $600,000 a month in lease obligations, as well as additional maintenance expenses. Miami Air would re-evaluate adding more planes to its fleet once demand picks up again. Each 737-800 aircraft can accommodate 189 passengers.

https://www.bizjournals.com/southflorida/news/2020/03/26/miami-based-charter-airline-files-for-bankruptcy.html

4 Likes

That was the one I was going off of

No it wasn’t nevermind

It was one by Winston and straw

I can’t seem to find the link to that but here’s a few other articles on Miami Air’s bankruptcy.

Also might want to change the title, “aid” to Air.

Oh yeah thanks

another one bites the dust

1 Like

It isn’t over just yet because Miami Air hasn’t entered full bankruptcy proceedings. But I’d says there’s a slim chance they recover.

Left without a market to operate in, Miami Air had no choice but to file for Chapter 11 reorganization. Chapter 11 is a form of bankruptcy protection in the United States, where the company in question is given the opportunity to reorganize its assets and operations and is given another chance at re-starting.

1 Like

They are filing for it since yesterday night GMT time

Sad Music Plays

Wow this is going to be really bad

Hello darkness my old friend…

Man, another airline bites the dust.

This airline operates a handful of sports team charters, looks like they may have to find a new carrier.

1 Like

Guys, nobody “bit the dust”. Chapter 11 bankruptcy does not mean the immediate doom of an airline.
I suggest you all give a read through of this article, not only does it explain chapter 11, but it also explains the impending Coronavirus crisis, and impact on the airlines.

1 Like

But their in a financial crisis at the moment because of Covid-19

Did you read the article by chance?
Also, did you know that the following US airlines all filed for Chapter 11 at some point?:

  • American
  • Frontier
  • Delta
  • Sun Country
  • United
  • US Airways (before they merged with AA)
  • Continental (before they merged with UA)

That’s just a few airlines. Like I said, Chapter 11 is not the end. Chapter 7 is the real “bankruptcy” that you are thinking of.

5 Likes

Left without a market to operate in, Miami Air had no choice but to file for Chapter 11 reorganization. Chapter 11 is a form of bankruptcy protection in the United States, where the company in question is given the opportunity to reorganize its assets and operations and is given another chance at re-starting.

They didn’t declare full bankruptcy.

1 Like

I understand what they are saying. But I’m saying Miami Air is RUNNING OUT OF MONEY due to the Lack of bookings from the Coronavirus

They have a slim chance of getting out of this though

The show of optimism is refreshing, but I seriously doubt Miami Air will ever fly again. I’m not an aviation bankruptcy expert, but my 30+ years in the business tells me this is the end of another airline. The letter released from the CEO of Miami Air (included in another post) was straight-to-the-point and indicated Miami Air is history. Prior to earning my A&P, I was hired by Altair Airlines. The next day they filed for bankruptcy and were gone. I worked for PeopleExpress; bankruptcy and gone. I worked for a charter airline known as Gulf Air out of LA (same type of operation as Miami Air); bankruptcy and are gone. 16 years with Northwest Airlines; gone. Yes, NWA was swallowed-up by Delta, but they survived bankruptcy due to the size of their fleet and route structure. What does Miami Air have? Nothing anyone wants. Now I’m with another airline struggling to survive in today’s economic crisis. No pun intended (well, maybe a little), but the aviation business has always been as turbulent as a business can be. My best advice; steer your kids away from aviation! Convince them to pursue the trades; they’ll thank you for it some day!

2 Likes