Aircraft Leasing Company Revokes Deal, Asks for Millions to Retain Planes

Silver Airways, a Florida-based low-cost carrier, filed for Chapter 11 bankruptcy at the end of 2024. While the airline claimed this move would allow it to restructure and carry on, a government-appointed bankruptcy trustee now wants the case dismissed altogether in favor of liquidation.

The carrier has been operational since 1988, utilizing a fleet of ATR-600 turboprops and DHC-6-300 seaplanes to get to destinations like Tampa, Nassau, and San Juan.

But behind the tropical journeys is a growing financial crisis. The airline currently holds over $500 million in debt, with unpaid airport fees piling up from as far back as 2021. Silver nearly lost access to Fort Lauderdale-Hollywood International in 2023 and was evicted from both Orlando International and Anguilla’s Clayton J. Lloyd International Airport for non-payment in early 2025.

Despite the airline’s public claims that restructuring is “going exceedingly well,” creditors and the court-appointed trustee disagree. According to the trustee, Silver’s ‘fanciful’ financial projections are overly optimistic and ignore ongoing losses. A hearing is set for May 7 for multiple creditors, including the City of Tallahassee, Monroe County, and StandardAero, to argue for immediate repayment.

TrueNoord, the leasing company that owns several of Silver’s aircraft, abruptly demanded millions in back payments in March. StandardAero is also demanding the return of a leased engine. The City of Tallahassee filed a complaint requiring that any passenger facility charges collected by Silver be paid directly to the airport to avoid default.

Silver has not broken its public front of confidence since it filed for bankruptcy, claiming it will emerge “stronger and more dedicated” after restructuring. The company insists that all tickets remain valid, flights out of Pensacola will continue, and loyalty programs tied to JetBlue and United will not be affected. However, it is now mid-April, and Silver has yet to announce any formal restructuring plan, despite saying it would be done by March.

FMI: www.silverairways.com