Thu, Mar 08, 2012
Major Airlift Service Provider For U.S. Military
The charter carrier Ryan International Airlines has filed for Chapter 11 bankruptcy protection, citing decreases in government spending. The carrier provides airlift services to the U.S. military on a contract basis.
Ryan's primary business had been carrying tourists to the Caribbean, but increased competition from larger airlines decreased the profit it could make flying those routes. Executive Vice President mark Robinson told the Wall Street Journal that it shifted its focus, devoting the majority of its fleet to military operations.
In documents filed with the U.S. Bankruptcy Court in Rockford, IL, the Wichita-based airline said a 2010 cut in reimbursements to air carriers adversely affected its bottom line, and that its costs remained fixed while the government made deeper cuts in military charter flying.
The airline has also spent millions to buy two Boeing 777 aircraft from Egypt Air that it says it now cannot fully operate.
The documents claim $46.6 million in assets against $79.2 million in liabilities and annual revenue of over $244 million. It is seeking $4.5 million in bankruptcy financing from Intertrust Bank to keep it flying while the case is in court.
The Rockford Register Star reported last year that the airline had laid off some 200 employees, including pilots, flight attendants, and others, but had re-hired about half when it saw an uptick in businesses. All employees are eligible for re-hire as needed.
Ryan Airlines has a fleet of 18 airplanes. Along with its military and commercial charters, it provides services to leisure travelers and sports teams.
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