iAero Airways, an American part 121 charter airline, announced that it has filed voluntary petitions for reorganization under Chapter 11. The company is the largest passenger and corporate cargo carrier in the United States.
The filing was made in the United States Bankruptcy Court for the Southern District of Florida, Miami Division. In connection with this, the company has secured approximately $22.5 million in financing. Chapter 11 will allow iAero to continue its operations, and the airline has announced that plans to maintain its operations throughout the process. Scheduled flights will be unaffected.
«Our customers remain our top priority, and they can continue to rely on us for their travel needs,» said Timothy Rainey, President of iAero Airways. «Our board of directors has determined that it is necessary to take this step to strengthen our financial position and restructure certain contractual relationships. We believe that this filing is the most effective way to reorganize with minimal impact on the business and our customers.»
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He continued, stating that «we are also committed to advancing this process as expeditiously as possible so that the company can emerge from it well-positioned to maximize our long-term prospects for the benefit of our customers, employees, and all other stakeholders.»
Rainey added that the company under his leadership is optimistic about its long-term future. He also indicated that once its operation stabilizes – still affected by the lingering effects of the pandemic, which exerted unprecedented pressures on the industry – its liabilities will be significantly reduced.
The airline will file motions to ensure operations remain as regular as possible. It will also continue to pay salaries, medical coverage, vacations, and other benefits. Furthermore, the company is confident in its ability to meet its obligations to critical suppliers and to provide safe and reliable flight service to its customers.
