American regional airline Silver Airways has reached a settlement with Broward County and will be able to continue operations at Fort Lauderdale-Hollywood International Airport (FLL), its main hub.
According to county officials, the company owes more than 1.4 million dollars in rent, landing fees and delay charges.
See also: Silver Airways increases capital, aircraft and operations
Silver Airways avoids lease termination
The airline was on the verge of eviction on Tuesday 18 April due to non-payment of rent. Efforts to reach an agreement were unsuccessful until the evening of the previous day.
However, the county’s Aviation Department presented a payment plan that both parties agreed to implement before a vote took place that could have resulted in the termination of Silver Airways’ current lease. All nine members of the county commission voted unanimously in favour of the agreement.
A payment plan through 2024
Under the agreement, the carrier agreed to make an immediate payment of 200.000 dollars to pay off part of its debt. The airline must make another payment, for a total of 300.000, by 19 May. In addition, it must pay another 100.000 dollars by 16 June and another 100.000 by 21 July.
Thereafter, Silver Airways must make monthly payments on the total amount due until April 2024. Steve Rossum, the company’s CEO, acknowledged the debt and pledged to «do a better job in the future». Should the company fail to meet its commitments, Broward County could suspend the contract.
The company currently operates a fleet of ATR 72 and 42-600 aircraft and operates scheduled flights in the southeastern United States and the Caribbean.
