SEATTLE -- Pro Air filed for protection from creditors under
Chapter 11 of the U.S. Bankruptcy Code Sept. 18, citing the Federal
Aviation Administration order that forced the carrier to shut down
its operations as of midnight Sept. 18.
The airline, which is not a member of ARC, said it was taking
the action only to protect its assets so it can get back in the air
as soon as possible.
"We are taking Chapter 11 action at this point to preserve our
existing resources, including our fleet of aircraft," said Craig
Belmondo, president and chief operating officer of Pro Air.
The airline is appealing the FAA's order, and insisted it still
expects to be back in the air shortly, perhaps before the end of
September. The FAA alleged the airline has maintenance problems
that make it potentially unsafe.
Pro Air, which has its base of operations at Detroit City
Airport but its headquarters in Seattle, filed for Chapter 11 in
Seattle in U.S. Bankruptcy Court, Western District of
Washington.
Because of the bankruptcy filing, Northwest said it no longer
will accept Pro Air tickets.
The airline said it had "worked extremely hard" with Pro Air
after the FAA shutdown to assist Pro Air's customers but complained
that "at no time during those discussions did the Pro Air
executives tell us they were planning a bankruptcy filing within
hours that rendered our agreement meaningless."
Spirit Airlines, however, said it will continue to accept
confirmed Pro Air tickets on a standby basis for travel through
Sept. 30 between Detroit City Airport and New York's LaGuardia or
Orlando.
Those passengers must check flight availability with a Spirit
ticket agent at least 90 minutes prior to the departure time of the
Spirit flight.
Pro Air ticket holders who want a refund instead of exchange
will have their credit cards automatically credited 72 hours after
the date of their Pro Air reservation, the airline said.
The airline said it will pay its 10% commission on Pro Air
tickets used for Spirit flights.