Tag Archives: 7374B7

Swift Air to emerge from Chapter 11 bankruptcy in mid October

Swift Air (USA) (Phoenix) now plans to emerge from Chapter 11 bankruptcy reorganization in mid October following the approval of the bankruptcy court. The Part 121 supplemental airline filed for bankruptcy reorganization in June 2012. The airline issued this statement:

On October 2, 2013 the U.S. Bankruptcy Court, District of Arizona granted final approval to Swift Air’s proposed plan of reorganization, thus paving the way for the company’s emergence from bankruptcy protection by mid-October. The company’s reorganization plan was overwhelmingly supported by the company’s creditor constituencies.

Swift’s CEO Jeff Conry said that “this is an important milestone in the company’s continuing steps to complete its financial restructuring and emerge from chapter 11 in the very near future. We are gratified to have the support of our plan sponsor, Nimbos Holdings, as well as the Official Creditors’ Committee.”

Ken Woolley, the principal behind Nimbos Holdings and the plan’s financial backer, said, “We are very excited about the company’s upcoming emergence from chapter 11, and look forward to a very successful future with the company.”

Copyright Photo: Mark Durbin/AirlinersGallery.com. The former US Airways Boeing 737-4B7 N802TJ (msn 24874) is pictured parked at San Francisco International Airport in the current livery, available for charter work. The aircraft was formerly painted and operated for the John McCain presidential campaign.

Swift Air:

Swift Air prepares to exit Chapter 11 bankruptcy reorganization

Swift Air LLC (USA) (Phoenix) has signed a definitive Plan Funding Term Sheet with NIMBOS LLC that provides for a substantial capital infusion and paves the way for the company to emerge from Chapter 11 by late September concluding its thirteen month reorganization. The company has filed a motion with the bankruptcy court for approval of $1.4 million in additional funding by NIMBOS as part of the steps to emerge from Chapter 11.

Swift Air LLC, has been best known for its 14 years of incident free operations, transporting presidential candidates like Senator John McCain, professional sports teams, and the world’s biggest music acts. Dealt a significant blow from the NBA lockout in the 2011-12 season, followed shortly thereafter by the NHL lockout in the 2012-13 season, Swift Air filed for bankruptcy in June of 2012 and has explored multiple exit strategies, before entering into this new arrangement with NIMBOS. The company has renewed its commitment to its sports charter line of business and is looking forward to the start of the NHL and NBA seasons, which will be the first uninterrupted seasons for these leagues in the past 2 years.

Swift Air is a certificated FAR 121 Air Carrier and operates a fleet comprised of Boeing 737 and Boeing 767 passenger aircraft.

Aero Contractors struggles to get airborne again

Aero Contractors Company (Aero) (Lagos) suspended all operations on March 13 after its employees protested the company’s plan to outsource some of the jobs. The Nigerian Civil Aviation Authority (NCAA) is now requiring the airline to go through a re-certification process before it can resume operations according to the Nigerian Tribune.

The airline operates scheduled passenger services with Boeing 737-400 and 737-500 aircraft and Bombardier DHC-8-300 series turboprop aircraft to various destinations across Nigeria and other parts of Africa.

Aero Contractors of Nigeria was formed in 1959 as a wholly owned by Schreiner Airways B.V of the Netherlands. The company initially was constituted with a 40% Nigerian holding in 1973 and subsequently 60% in 1976.

In January 2004 Schreiner Airways was bought by Canadian Helicopter Corporation(CHC) who acquired a 40% holding of Aero Contractors while the 60% majority share remained within the Ibru family group. Currently, Aero is wholly owned by the Ibru family.

The airline is currently recruiting new employees.

Read the full report: CLICK HERE

Copyright Photo: Bruce Drum. Formerly operated by US Airways, Boeing 737-4B7 N436US (msn 24558) became 5N-BIZ with the Nigerian carrier.

Aero Contractors:

US Airways reports its highest annual profit in company history

US Airways Group, Inc. (US Airways) (Phoenix) today reported its fourth quarter and 2012 financial results. For full year 2012, the Company reported a record net profit of $537 million, or $2.79 per diluted share, which excludes net special items totaling a credit of $100 million. This compares to a full year 2011 net profit of $111 million excluding net special items, or $0.68 per diluted share. On a GAAP basis, the Company reported a record net profit of $637 million, or $3.28 per diluted share for 2012, up 797 percent over the 2011 net profit of $71 million, or $0.44 per diluted share.

For the fourth quarter 2012, net profit excluding net special items was $46 million, or $0.26 per diluted share. Net profit excluding net special items for the fourth quarter 2011 was $21 million, or $0.13 per diluted share. On a GAAP basis, the Company reported a record net profit of $37 million for its fourth quarter 2012, or $0.22 per diluted share, compared to a net profit of $18 million, or $0.11 per diluted share, for the same period in 2011. As previously disclosed, the Company’s fourth quarter and full year results were negatively impacted by approximately $35 million due to Hurricane Sandy. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of GAAP financial information to non-GAAP financial information.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, “We couldn’t be happier with the performance of US Airways in 2012. Our 32,000 hard-working team members did a phenomenal job of running a safe and reliable airline for our customers and these record financial results are the result of their efforts.

A strong demand environment and record passenger yields led to improved revenue performance. Total revenues in the fourth quarter were a record $3.3 billion, up 3.9 percent versus the fourth quarter 2011 on a 1.4 percent increase in total available seat miles (ASMs). Total revenue per ASM was a record 15.58 cents, up 2.5 percent versus the same period last year driven by a two point increase in passenger load factor.

For the full year 2012, total revenues were a record $13.8 billion, up 5.9 percent versus 2011. Total revenue per ASM increased 3.9 percent to a record 15.64 cents, driven by a 3.5 percent increase in passenger yield and a record load factor of 82.9 percent, up from 82.3 percent in 2011.

Total operating expenses in the fourth quarter were $3.2 billion, up 3.5 percent over the same period last year. Mainline cost per available seat mile (CASM) was 13.55 cents, up 2.8 percent on a 0.7 percent increase in mainline ASMs. Excluding special items, fuel and profit sharing, mainline CASM was 8.73 cents, up 2.9 percent versus the same period last year. Express CASM excluding special items and fuel was 14.54 cents, down 2.7 percent on a 4.8 percent increase in ASMs.

For the full year 2012, total operating expenses were $13.0 billion, up 2.7 percent versus 2011. Excluding special items, fuel and profit sharing, mainline CASM increased 0.5 percent to 8.39 cents. Express CASM excluding special items and fuel decreased 1.5 percent to 14.49 cents.

Liquidity

As of December 31, 2012, the Company had $2.71 billion in total cash and investments, of which $336 million was restricted, up from $2.31 billion, of which $365 million was restricted on December 31, 2011.

Special Items

The Company recognized approximately $9 million of net special items in the fourth quarter, which are primarily related to corporate transaction and auction rate securities arbitration costs.

Copyright Photo: Bruce Drum. The remaining Boeing 737-400s will be the next type to be retired by US Airways. Boeing 737-4B7 N439US (msn 24781) climbs away from the runway at Charlotte.

US Airways: