Sat, Jul 10, 2010
Operations Have Ceased, Carrier Has Filed For Bankruptcy
Protection
Arrow Air Holdings Corp. (“Arrow”) has ceased
scheduled service operations, effective immediately. Arrow issued
the following statement:
“Like many companies in our industry, Arrow Air has
experienced significant operating losses as a result of increasing
operating costs and declining revenues. The decision to wind down
the Company’s schedule service operations was a difficult
one. This decision was not made lightly, and was a last resort
after the Company exhaustively searched for other options including
financing or a sale of the business. Arrow is now focused on
helping to smooth the transition for the Company’s hard
working, dedicated employees as well as its customers, suppliers
and other stakeholders.”
In papers filed with the US Bankruptcy Court in Miami the
company declared assets of $10 million to $50 million and listed
debts of $100 million to $500 million.
Air Cargo World indicates that around 450 employees have been
laid off but it is understood that Arrow has temporarily retained a
workforce of 130. The company's chief restructuring officer, Doug
Yakola, said: "The debtors intend to implement the orderly
wind-down of their scheduled service operations and the liquidation
of their assets, subject to the availability of charter flying and
any potential sale transaction that may arise in Chapter 11."
Arrow operated more than 60 flights a week to and from Central
and South America and the Caribbean. It operated seven DC-10s on
behalf of customers such as the US Postal Service and the
Department of Defense, and won certification from the FAA last year
to fly B757-200s.
The carrier reorganized under Chapter 11 in June 2004 but ran
back into difficulty. It is reported to have lost $28 million in
2008 and a further $26 million in 2009, despite reducing its
operating costs by restructuring aircraft leases.
Arrow announced plans to lay off 473 workers in April as it
tried to escape bankruptcy. A fellow Miami-based cargo carrier,
Centurion Air, was reported at that time to be preparing a bid.
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