Era Aviation Files Chapter 11, Will Continue Ops

Citing a bank restriction following a dispute over its cash flow, Anchorage, AK-based Era Aviation filed for Chapter 11 bankruptcy Friday. The company is expected to continue normal operations while under reorganization.

According to company president Paul Landis, the airline's dispute with Maryland-based Capital Source Financing began when the lending organization questioned whether the airline had met its third-quarter operating cash flow targets. The bank subsequently restricted the airline's access to funds.

The airline is mostly current on its debt to vendors, added Landis, and overall is in sound financial condition.

Era Aviation -- which, according to the Associated Press, has provided airline service in Alaska since 1948 -- was purchased last July by a small group of California investors led by former pro football player Willie Gault.

The company's website states the airline currently operates a fleet of De Havilland DHC-8 and Beavers, flying to such Alaskan communities as Anchorage, Cordova, Homer, Valdez, Kenai, and Kodiak -- in addition to 17 Western Alaska villages from its hub in Bethel. Like similar outfits in Alaska, the airline also runs charter flights and cargo to those destinations.

The airline employs approximately 300 people, according to the AP.

FMI: www.flyera.com