Less than five months after it declared bankruptcy, charter aircraft operator Southern Air has emerged from bankruptcy as a restructured company.
According to Chief Executive Officer Daniel McHugh, the process has allowed Southern Air to shed debt, improve operations and become financially flexible.
"Today, we are well-positioned both financially and operationally to continue to build Southern Air for the long-term benefit of our customers, suppliers, business partners, crew members and employees," he said in a statement.
Southern Air declared bankruptcy on Sept. 28, 2012 and completed all the conditions in its reorganization plan on April 15.
According to company officials, major cutbacks by the U.S. Defense Department spending in addition to the worldwide economic malaise affected the carrier's bottom line so much that it had to declare bankruptcy. During the reorganization, Southern Air continued to transition to a modern, fuel-efficient fleet. Much of the firm's corporate debt and other costs came from its acquisition by Oak Hill Capital Partners in 2007. Upon buying Southern Air, Oak Hill officials combined the company with its existing air freight holding, Cargo 360. - Jon Ross