Tag Archives: chapter 11 bankruptcy

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:

American bankruptcy trustee questions the $19.9 severance package for CEO Tom Horton

American Airlines (Dallas/Fort Worth) is facing a new round of questioning in the bankruptcy court to further explain the large $19.9 million severance package afforded to departing CEO Tom Horton. According to this report by Reuters, Trustee Tracy Hope Davis is asking the carrier to explain the large settlement and also the “sweeping changes” to its employee pay programs under the Chapter 11 bankruptcy reorganization.

Read the full report: CLICK HERE

Top Copyright Photo: Brian Peters. Boeing 777-323 ER N717AN (msn 31543) arrives at the large Dallas-Fort Worth International Airport hub.

American Airlines:

Bottom Copyright Photo: American Airlines. Outgoing AA CEO Tom Horton.

Southern Air is moving to Cincinnati, retires its last Boeing 747-200F freighter

Southern Air (2nd) is moving its corporate headquarters from Norwalk, CT to Cincinnati/Northern Kentucky International Airport (CVG) located in Covington, KY as part of its Chapter 11 reorganization. DHL, its largest customer, has a hub at CVG. As we previously reported, Southern Air and its holding company, Southern Air Holdings, Inc., filed for Chapter 11 bankruptcy protection and reorganization on September 28, 2012.

Read the full report from the kypost.com: CLICK HERE

In other news, Southern Air retired its last Boeing 747-200F freighter (N783SA) on January 5, 2013 as reported by ch-aviation.

Copyright Photo: Ton Jochems. Boeing 747-281F N783SA (msn 23919) is pictured on the ramp at Frankfurt prior to the retirement.

Southern Air:

AMR and the Allied Pilot Association (APA) agree on a new contract

AMR Corporation (Dallas/Fort Worth) (American Airlines) and the Allied Pilots Association (APA) (Dallas/Fort Worth) have agreed on a new contract, still subject to the approval of the members.

Read the full report from Reuters: CLICK HERE

Copyright Photo: Brian McDonough. Members of the Oneworld alliance a sighing in relief with this agreement, if approved, it will allow AA to emerge from Chapter 11 bankruptcy reorganization. Boeing 767-323 ER N395AN (msn 29432) approaches the runway for landing at Miami.

American Airlines:

Blue Panorama Airlines enters into bankruptcy protection and reorganization

Blue Panorama Airlines (Rome-Fiumicino) has entered into the equivalent of Chapter 11 (bankruptcy protection and reorganization). On October 23, the company issued the following statement (translated from Italian):

BLUE PANORAMA AIRLINES TAKES ADVANTAGE OF NEW REGULATORY TOOLS CONTAINED IN THE “ORDER OF DEVELOPMENT” TO INCREASE ITS COMPETITIVENESS ‘

Blue Panorama Airlines S.p.A. announces that it has applied for admission to the composition procedure in continuity under the Development Decree, according to the U.S. model of highly effective better known as “Chapter 11”.
Blue Panorama has decided to use this tool accessible to even a few weeks to Italian companies to consolidate their financial and capital structure in order to deal in the best position possible to the challenges posed by the current economic environment in the field of aviation and leisure travel. This is to continue to play in this respect the leading role that for over 14 years, is recognized by its customers. The start of the procedure has been notified to ENAC, which provided for the issuance of temporary license pursuant to article 9 of the Regulation 1008/2008.

The objectives that arises Blue Panorama Airlines through this new route are to:

– Continue to offer passengers excellent service, safe and reliable;
– Improve the industrial and commercial efficiency;
– To ensure the normal operation of domestic and international flights;
– Continue to offer competitive air links for the benefit of users;
– Make Blue Panorama Airlines and Blu-express a new benchmark in the sector.

During the reorganization process, Blue Panorama Airlines will carry out normal operations, while maintaining the commitment of its management team and operational. In addition to the consolidation of traditional connections will also be triggered new international services of great interest both outgoing and incoming flows.

Blue Panorama Airlines and Blu-express continue to operate their respective flight schedules, honoring tickets and reservations as usual, and to continue the industrial partnerships with carriers, tour operators and travel agent partners.
The President and founder of the company, Franco Pecci, maintains and increases its commitment to the holding in the firm belief that customers, which have always been the company’s priority will continue to use the Blue Panorama flights and Blu-express for quality service competitive and constantly delivered by the carrier in all years.

Copyright Photo: Lucio Alfieri. The company operates under both the Blue Panorama Airlines and blu-express names and brands. Boeing 737-4K5 EI-CUN (msn 27074) carries both names at Bologna.

Blue Express Airlines:

Frameable Color Prints and Posters:

American’s pilots to picket today at Chicago O’Hare

Allied Pilots Association (APA), representing the 10,000 pilots who fly for American Airlines (Dallas/Fort Worth), will be picketing today (September 20) to “signify American Airlines pilots’ determination to secure a contract commensurate with their status as professional aviators for a major U.S. carrier”.

The 16 members of the APA Board of Directors will also participate in the rally, along with rank-and-file pilots from American Airlines’ Chicago base and other locations.

The picketing will be conducted between Terminals 2 and 3 on the outside connecting sidewalk at O’Hare International Airport.

According to the union, “American Airlines management recently received bankruptcy court approval to reject the APA-American Airlines Collective Bargaining Agreement. Management is now unilaterally implementing new terms of employment that adversely affect pilots’ working conditions, compensation and retirement security. APA believes management is using Chapter 11 bankruptcy to extract far more value from the pilots than what’s needed to successfully restructure American Airlines.”

In addition, the APA issued the following statement today:

The Allied Pilots Association (APA), certified collective bargaining agent for the 10,000 pilots of American Airlines, issued the following prepared statement in response to recent reports alleging a decline in the airline’s operational performance:

“First of all, there is no job action of any sort that is organized, supported or sanctioned by the Allied Pilots Association.

“APA independently tracks the airline’s operational performance. We have verified that pilot sick rates have not deviated from normal historical rates. We have likewise verified that crew cancellations remain at normal rates.

“One area of increased operational unreliability we have observed is in mechanical delays, which isn’t surprising. Although American Airlines operates the oldest fleet of any major U.S. carrier, management has decided to furlough a large number of mechanics and close one of its largest maintenance facilities. Management also decided some time ago to reduce its inventory of spare parts.

“In addition, management halted the recalls of furloughed pilots late last year, which has resulted in an insufficient number of pilots to maintain the schedule properly.

“It’s also important to remember that management chose to reject the APA-American Airlines Collective Bargaining Agreement, which served as an operating manual for our pilots. Management’s action has generated significant uncertainty for our pilots with respect to employment protections and operating rules, which are now under management’s unilateral control.

“APA members are experienced professionals who conduct themselves as professionals under whatever circumstances they encounter. Any negative impact on our airline’s operational integrity is of management’s own making.”

American Airlines: