Arrow Folds
Operations Have Ceased, Carrier Has Filed For Bankruptcy Protection
Arrow Air Holdings Corp. (“Arrow”) has ceased scheduled service operations, effective immediately. Arrow issued the following statement:
“Like many companies in our industry, Arrow Air has experienced significant operating losses as a result of increasing operating costs and declining revenues. The decision to wind down the Company’s schedule service operations was a difficult one. This decision was not made lightly, and was a last resort after the Company exhaustively searched for other options including financing or a sale of the business. Arrow is now focused on helping to smooth the transition for the Company’s hard working, dedicated employees as well as its customers, suppliers and other stakeholders.”
In papers filed with the US Bankruptcy Court in Miami the company declared assets of $10 million to $50 million and listed debts of $100 million to $500 million.
Air Cargo World indicates that around 450 employees have been laid off but it is understood that Arrow has temporarily retained a workforce of 130. The company's chief restructuring officer, Doug Yakola, said: "The debtors intend to implement the orderly wind-down of their scheduled service operations and the liquidation of their assets, subject to the availability of charter flying and any potential sale transaction that may arise in Chapter 11."
Arrow operated more than 60 flights a week to and from Central and South America and the Caribbean. It operated seven DC-10s on behalf of customers such as the US Postal Service and the Department of Defense, and won certification from the FAA last year to fly B757-200s.
The carrier reorganized under Chapter 11 in June 2004 but ran back into difficulty. It is reported to have lost $28 million in 2008 and a further $26 million in 2009, despite reducing its operating costs by restructuring aircraft leases.
Arrow announced plans to lay off 473 workers in April as it tried to escape bankruptcy. A fellow Miami-based cargo carrier, Centurion Air, was reported at that time to be preparing a bid.