Miami Air files for Chapter 11 bankruptcy protection

Miami Air International (LL, Miami Int'l) is looking to restart under the same brand and a similar strategy after being acquired by Tomas Romero, the owner of Caribbean Sun Airlines, Inc. d/b/a World Atlantic Airlines (WL, Miami Int'l), during a recent bankruptcy auction.

The original Florida-based bankrupt firm and the newly-founded Miami Air International, LLC, incorporated in Delaware, jointly applied to the US Department of Transportation for a transfer of all certificates of public convenience and necessity for interstate and foreign charter air transportation issued to the former.

The companies said that Romero acquired Miami Air after it had filed for bankruptcy on March 24, 2020. In the application, they underlined that the "new" Miami Air would operate with the same aircraft type and employ the same key personnel as the bankrupt firm, as well as some new experienced employees.

"Miami Air’s fleet will consist of readily-available, leased Boeing B737 aircraft available on favourable terms, and the new carrier proposes to operate a fleet of up to six such aircraft by the...

Miami Air International (LL, Miami Int'l) is set to be liquidated after failing to secure the renewed investment needed to refloat the debt-stricken Florida-based ACMI/charter operator.

Miami Air filed for Chapter 11 bankruptcy protection in March this year amid a hunt for new investment. However, President and Chief Executive Kurt Kamrad said in a communique to staff on Friday, May 8, that despite a "great deal of effort" over the past several weeks, including discussions with numerous transaction partners, no rescue financing had been secured.

"As many of you heard in today's [May 8] court hearing, ...Miami Air, unfortunately, has not received a viable proposal to acquire the assets of Miami Air, or to fund its operations going forward," he said. "Therefore, today will be the last day of employment for all Miami Air employees."

With no prospect of resuming operations, Miami Air now goes into Chapter 7 liquidation wherein its total assets will be disposed of and proceeds distributed to creditors which include the Defense Finance and Accounting Service (DFAS), KLM Royal Dutch Airlines...

Miami Air International (LL, Miami Int'l) has filed a motion with the US Department of Transportation (DOT) opposing an emergency exemption that would allow Nolinor Aviation (N5, Montréal Trudeau) to carry out relief flights to Puerto Rico.

The Canadian operator has been transporting emergency personnel and humanitarian aid to Puerto Rico in the aftermath of a January 7 earthquake, under a contract awarded by the US Federal Emergency Management Agency (FEMA). On January 8, the airline applied to the DOT for emergency exemption from cabotage (ninth freedom) restrictions given the fact that flights between the mainland US and Puerto Rico, a US territory, are considered domestic operations.

Nolinor Aviation was tentatively awarded the contract through January 15, 2020. It used three B737-200(M)s, C-GNLN (msn 23050), C-GNLK (msn 20836), and C-GNLW (msn 23130), to operate from Norfolk Int'l, VA to San Juan Luis Muñoz Marin, Flightradar24 ADS-B data shows.

"Grant of this application is in the public interest and necessary to avoid an unusual hardship. Grant of this application is also...

The US Department of Transportation (DOT) has announced it will suspend the authority granted to all public charter operators to serve any airport in Cuba other than Havana Int'l and impose a cap on the number of flights to the Cuban capital.

The DOT said it was taking the step at the request of the Department of State. In a letter to the Secretary of Transportation, Elaine Chao, the Secretary of State, Mike Pompeo, wrote that the ban is meant "to strengthen the impact of the Administration's policy of applying economic pressure on the Cuban regime to respect human rights and fundamental freedoms for all in Cuba," in particular in retaliation for Cuba's support for the regime of Nicolás Maduro in Venezuela.

The ban on public charters to airports other than Havana will enter into force 60 days after the publication of the order, i.e. on March 10, 2020.

The DOT said it will explain the procedures regarding the capped number of flights into Havana in a separate show-cause order, which has yet to be issued....