Creditors expect to start reviewing a status report due on November 2 from a court-appointed insolvency administrator for Fairchild Dornier’s 728 program division, just as the most recent target date for first flight of the 70-seat regional jet once again passes uneventfully. Scheduled for this year’s fourth quarter, the 728’s first flight now couldn’t happen until late next year–if ever.
After announcing plans to lay off up to 350 employees starting March 1, Moravan Aeroplanes’ LZ Aeronautical Industries division continues to champion the long-foundering Let L-610G as a viable program, despite the uneventful passing of the Czech company’s own year-end 2002 funding deadline. Meanwhile, Dr.
An 11th-hour effort on January 31 failed to keep OEM startup VisionAire afloat after a federal district court judge placed the company back into Chapter 7 bankruptcy on January 21. The company had been operating under Chapter 11 bankruptcy since September, when the judge agreed to the voluntary insolvency after five creditors petitioned the court to place VisionAire into involuntary Chapter 7 bankruptcy in July.
Aspen Executive Air (AEXJet), an ARG/US Platinum-rated charter operator, voluntarily filed for Chapter 11 bankruptcy protection last week in the U.S. Bankruptcy Court, District of Delaware. The petition lists up to $100 million in liabilities, with more than 200 creditors.
Fairchild Dornier Aero Industries has filed for bankruptcy protection in a German district court, virtually ensuring the end of the latest attempt to resuscitate the long-foundering 728 regional jet. The company’s primary shareholder, Chinese investment firm D’Long, has cut off all funding for the enterprise after subsidiary D’Long Europe failed to attract any serious interest from outside investors.
Comair has given its pilots until March 4 to ratify a tentative deal forged with union representatives last month after U.S. Bankruptcy Court judge Adlai Hardin ruled that the group cannot legally call a strike. The agreement came just as management prepared to impose $15.8 million in cost concessions, authority for which Hardin had granted in December. Whatever the result of the pilot vote, ALPA vowed to appeal Hardin’s ruling.
Independence Air and parent company FLYi filed for Chapter 11 bankruptcy protection last month, ending a year-and-a-half-long wait for what many considered an inevitable financial collapse. A big money loser since it broke ties with former code-share partner United Airlines, the former Atlantic Coast Airlines said it would seek approval to sell itself in a court auction.
A federal district court judge struck a severe blow to the management of Mesaba Airlines last month when he overturned an earlier bankruptcy court ruling that gave the company permission to reject its labor contracts with its pilots, mechanics and flight attendants. Judge Michael Davis of the U.S.
The management of Mesaba Airlines issued a proposal for pay concessions to its pilots last month that, if adopted, would slash salaries by between 13 and 19 percent. The proposal calls for a 19-percent pay cut for Avro RJ captains, a 17-percent decrease for Saab 340 captains and a 13-percent reduction for Bombardier CRJ captains. First officers would face an average pay cut of 13 percent.
Anchorage, Alaska-based regional airline Era Aviation in late December filed for Chapter 11 bankruptcy protection after its main source of capital decided to restrict its funding in a dispute over cash-flow targets.