Fly GLO (New Orleans International) has confirmed it will suspend all operations with effect from July 15 as it prepares to part ways with current capacity provider Corporate Flight Management (Smyrna).

The Louisiana-based virtual carrier said in a statement issued to The New Orleans Advocate on Tuesday, July 11, that it had taken the decision after experiencing “an excessive number of flight cancellations due to the inability and unwillingness of Corporate Flight Management to properly staff flights and maintain aircraft as required.”

CEO Trey Fayard said he hoped to resume services as soon as possible albeit only once the right operator had been found. CFM operated three Saab 340Bs for GLO on a network spanning New Orleans International, Shreveport Regional, Huntsville International, Little Rock, Destin-Fort Walton Beach, and Memphis International.

As previously reported, GLO filed for US Chapter 11 bankruptcy protection in April after CFM threatened to terminate its capacity supply contract, citing USD350,000 in unpaid invoices dating back to March, as well as a USD500,000 security deposit. Bankruptcy protection allowed the virtual carrier to continue to operate and generate revenue while attempting to restructure its operations.

The relationship between GLO and CFM soured earlier in the year when GLO sued CFM after one of its aircraft was damaged. GLO alleged that the accident was the fault of one of CFM's pilots, which CFM denied. CFM then notified GLO that as it was in arrears it was in breach of contract, and advised that it would terminate their agreement.