Gulfstream International seeks bankruptcy protection

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bimjim
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Gulfstream International seeks bankruptcy protection

Unread post by bimjim » Mon Nov 08, 2010

http://atwonline.com/news/other-headlin ... =nl_atw_dn

Gulfstream International seeks bankruptcy protection
November 8, 2010

Gulfstream International Group, parent of the airline, filed for protection under Chapter 11 of the US Bankruptcy Code Nov. 4.

The small Ft. Lauderdale-based turboprop operator said it intends to continue operating as it works to restructure its debt and secure long-term financing. It has arranged $5 million in debtor-in-possession financing from Victory Park Capital Advisors.

"We are operating our full schedule of flights and honoring tickets and reservations," said President and CEO David Hackett. "While we have seen strong year-over-year improvements, the impact of our borrowing in the last several years to cope with consistently high fuel costs and the economic impact of declining traffic made it too difficult for the company to continue to meet its debt repayment needs," Hackett stated.

Gulfstream flies 23 Beechcraft 1900Ds, offering more than 150 daily flights to 18 destinations in Florida and the Bahamas and six destinations from Cleveland under the federally subsidized Essential Air Service Program. It has around 600 employees and has codeshare relationships with Continental Airlines and United Airlines.

The parent company had a loss of $2.8 million for the six months ended June 30, on sales of $46.3 million, according to a filing with the US Securities and Exchange Commission. It carried 207,000 passengers, down 9.7% year-over-year. RPMs fell 8.3% to 45.3 million.

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