AMERIJET FILES FOR BANKRUPTCY PROTECTION
Amerijet International, the Ft. Lauderdale-based cargo airline, said Wednesday it has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
David Bassett, the airline's chairman and chief executive officer, said the action was due to a number of factors, but noted specifically FedEx taking over the U.S. Postal Service's contract from Emery Worldwide, with whom Amerijet had a charter contract since January. The loss of business resulted in idling six Boeing 727s, or half of Amerijet's air fleet.
Amerijet said it has been negotiating with aircraft lenders to address financing issues and has been taking “significant steps to streamline its operations prior to seeking the court's protection,” Bassett said. The company laid off 22 employees from its staff of 400 last Friday. No additional layoffs are planned during the reorganization process, the company said.
Amerijet, whose core focus is scheduled and charter service to the Caribbean, Mexico and Latin America, said there would be no disruptions to its domestic and international cargo services during the restructuring. In fact, Amerijet said it was expanding its Latin America service, adding a new route to a third city in Venezuela.