Two jet charter companies have filed for Chapter 11 bankruptcy protection

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In the skies over Miami-Dade, turbulence has hit the private aviation sector with the recent Chapter 11 filings of Airway Air Charter Inc. and Noble Jet Holdings LLC. These companies, operating out of Miami-Opa locka Executive Airport, have been stalwarts in the industry, but financial headwinds have forced them into a bit of a tailspin.

Let’s break it down. Airway Air, based in St. Petersburg, has been flying high since 2005, specializing in private jet services along the East Coast and to the Bahamas. Their fleet includes three Cessna Model 402s and a leased Citation Excel. On the other hand, Noble Jet, a newer player since 2021, focuses more on maintenance and owns a Cessna Citation Excel jet leased to Airway.

What led to their sudden descent into Chapter 11? Like many, the lingering effects of the pandemic have been a major factor. Despite global reopening efforts, both companies struggled to regain full altitude. Compounding their woes, the Bahamas’ shutdown of air charter operations for seven months post-pandemic onset in 2020 dealt a severe blow. Add in rising interest rates and client payment issues, and you've got a recipe for financial turbulence.

Airway Air faces debts totaling around $3 million, a mix of secured and unsecured claims, while Noble Jet grapples with approximately $2 million in secured claims. Despite attempts at short-term financing, the stringent repayment terms drained their operational funds dry.

But here’s the silver lining: Chapter 11 isn’t a crash landing; it’s a strategic maneuver. Both companies aim to use this process to restructure debts, protect assets, and devise plans to meet creditor demands. With a combined gross revenue of around $8 million last year, there’s still a market and money to be made. The focus now is on weathering the storm, stabilizing operations, and returning to smoother skies.

This serves as a reminder that even in glamorous sectors like private aviation, economic realities can ground even the highest flyers. As Airway and Noble navigate these challenges, we’ll be watching closely to see how they chart their course through turbulence and aim for a successful ascent once more.