National Airlines (N8, Orlando Sanford) affiliate, National Air Cargo, has filed a voluntary Chapter 11 petition with the United States Bankruptcy Court for the Western District of New York.

The cargo specialist says the decision to file pertains to an October 2013 US district court judgement against National Air Cargo (NAC). The case was filed by start-up Global BTG in 2010, and alleged that NAC Inc. breached a Letter of Intent by failing to finance aircraft leases through Global.

"NAC Inc. continues to contend there was no enforceable agreement and there was no breach. NAC Inc. has an appeal pending at the United States Court of Appeals for the Ninth Circuit," it said.

The Chapter 11 filing will allow NAC Inc. to continue business without the immediate threat of Global's judgment, and therefore permits NAC Inc. to continue serving its clients, making payments to all of its business partners, and employing workers in the Orchard Park, New York and Herndon, Virginia areas.

"We have appealed the unjustified and unexpected verdict in the case brought by Global BTG in 2010, but unfortunately that appeal will not be decided for some time," Christopher Alf, CEO of NAC Inc., said.

The filing in no way affects National Airlines or NAC Inc.'s parent firm National Air Cargo Holdings, Inc.

In other news, according to a report by EX-YU Aviation News, National Airlines is planning to launch transatlantic charter flights between New York and Dubrovnik from 2016.