Silver Airways, a regional airline that serves Florida and the Caribbean, continues flying after submitting for Chapter 11 chapter reorganization on Monday.
The Hollywood, Florida-based airline plans to safe new capital and restructure its debt by way of chapter, Silver mentioned in a assertion. It goals to emerge from chapter within the first quarter of 2025 as a stronger, extra aggressive airline.
All current bookings, together with these made through companions JetBlue Airways and United Airways, “stay legitimate,” and all clients “will expertise no disruptions to their bookings or providers,” Silver mentioned.
A number of U.S. airways proceed to battle following the pandemic. Whereas vacationers have returned in file numbers, the price of many objects from plane to labor elevated dramatically throughout the restoration. The biggest U.S. extremely low-cost service, Spirit Airways, filed for chapter safety in November amid mounting payments and weak income.
Silver faces comparable price challenges. In a chapter courtroom submitting, the airline disclosed quite a few unpaid money owed. It owes practically $4.5 million to plane lessor Azorra for its fleet of ATR turboprops and $2.1 million to the Inner Income Service in unpaid taxes or charges. Silver additionally lists unpaid payments at a few of its busied airports, together with the operators of Fort Lauderdale-Hollywood Worldwide Airport (FLL), Orlando Worldwide Airport (MCO), and San Juan’s Luis Munoz Marin Worldwide Airport (SJU).
The airline has additionally struggled to broaden in recent times. Makes an attempt so as to add flights exterior of Florida and the Caribbean have all ended unsuccessfully. Silver exited its final two U.S. locations exterior of Florida — Georgia’s Savannah/Hilton Head Worldwide Airport (SAV) and South Carolina’s Greenville-Spartanburg Worldwide Airport (GSP) — in March, schedule information from aviation analytics agency Cirium Diio reveals.
Every day Publication
Reward your inbox with the TPG Every day e-newsletter
Be a part of over 700,000 readers for breaking information, in-depth guides and unique offers from TPG’s specialists
And, in March, American Airways ended its loyalty partnership with Silver.
Silver serves 22 locations in Florida and the Caribbean at present, primarily from bases in Fort Lauderdale and San Juan, Cirium schedules present. It operates a fleet of eight ATR 42 and 6 ATR 72 turboprops.
Silver subsidiary Seaborne Airways additionally flies Twin Otter seaplanes between St. Thomas and St. Croix within the Caribbean.
Associated studying:
