Avantair Unveils Details of ‘Go-forward’ Plan
On Wednesday, Avantair sent out its “go-forward plan” for “NewCo,” the working name for a reborn Avantair, that would first seek to “restructure and stabilize the business” as a mostly East Coast-only fractional provider. Under the plan, the company’s debts would be wiped out, though the plan does not specify how that will be accomplished.
NewCo would also downsize employees to a “core group” and secure additional financing. NewCo would also need to retain at least 300 of the 620 fractional shareowners. Its fleet–currently at 56 airplanes–would be pared to 25 aircraft.
Those shareowners opting to stay with the new Avantair would have to pay a one-time assessment of $25,000 for a “catch-up maintenance fund” to bring the fleet to airworthy condition. Monthly management fees–which also include 1/12th of owners’ annual occupied time–would rise by nearly 40 percent, to $15,846.
The new Avantair would also need “$4.5 million in funding to finance Avantair’s restructuring process and permit NewCo to emerge with sufficient working capital.” In addition to this, Avanti manufacturer Piaggio Aero has pledged to provide a $1 million investment and another $1 million in credit facility on parts.
If it can attract the required number of customers and the necessary financing and shed its debt, the new Avantair–which will be rebranded–could start operations early next month, the plan says.