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78-894: On November 14, 2006, Direct Air announced nonstop service from Myrtle Beach to Newark, Niagara Falls, and Plattsburgh, New York. On March 7, 2007, Direct Air (Myrtle Beach Direct Air at the time) started flying. The flights were being operated by Sky King, Inc. on Boeing 737-200 aircraft until May 14, 2007, when Direct Air ended its relationship with Sky King, Inc. Direct Air's flights were then operated primarily by Xtra Airways and Sky King, Inc. Boeing 737-400 aircraft. Occasionally, especially during peak travel periods, additional other operating carriers and aircraft types are used. These have included jetBlue Airways , Sun Country Airlines , Virgin America , USA Jet , Dynamic Airways , Vision Airlines , and Miami Air . On March 12, 2012, Direct Air cancelled all of their charter flights throughout

156-403: A valuation of the reorganized business. Bankruptcy valuation is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with a significant time lag. Chapter 11 retains many of

234-458: A $ 250,000 fine when he is scheduled for sentencing in July, 2018 (the two remaining partners, S. Marshall Ellison—spouse of Kay Ellison—and Edward Warneck were not charged with criminal offenses as of 2018). The government's case alleged that these three partners conspired to defraud Valley National Bank of New Jersey of ticketholder funds deposited into a Public Charter escrow account established for

312-655: A Direct Air flight operated by Dynamic Airways from Lakeland Linder International Airport to Abraham Lincoln Capital Airport in Illinois lost an engine over the Gulf of Mexico and flew back to Tampa International Airport . Passengers were told another plane was on its way, but one never arrived. Passengers were bussed back to Lakeland. October 15, 2011: Direct Air flight from Lakeland Linder International Airport to Niagara Falls International Airport operated by Sky King, Inc. lost cabin pressure approximately one hour into

390-697: A bad engine that needed to be replaced. Also in December, the New Jersey Division of Gaming Enforcement revealed that Sky King owed $ 23,424.26 in taxes to New Jersey from 2009, thus prohibited from doing air charter business with Atlantic City casinos. Sky King emerged from Chapter 11 bankruptcy on October 3, 2014, upon confirmation by the United States Bankruptcy Court of the Trustee's Plan of Reorganization. Sky King

468-411: A closing date of October 15, 2017. On November 30, 2017, USGlobal Airways issued a press release stating that their agreement to purchase Songbird had been terminated as it was not the "best decision for the company". From March until May 2007, Sky King operated a single aircraft for Direct Air . In early 2011, Sky King teamed up again with Direct Air and flew two aircraft for the company. Depending on

546-799: A defense. After lengthy procedural delays, their case went to trial before Judge Susan D. Wigendon of the United States Court of the District of New Jersey on March 22, 2018, in Newark. After a seven-day trial, a jury returned a verdict of guilty for Ellison and Tull for all indicted counts: each defendant was convicted of four substantive counts of bank fraud, three counts of wire fraud and one count of conspiracy. Ellison, now 57 as of 2018 and Tull, now 72, each face up to 450 years in prison and US$ 15 million in fines when they are scheduled for sentencing in July 2018 along with Keilman. According to

624-473: A motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get a higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows

702-415: A number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay . While the automatic stay

780-410: A plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose a plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from the date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of

858-479: A price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling the creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law,

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936-442: A reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put, the plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of

1014-633: A return flight for round-trip passengers as required by the DOT of such public charter flights. Xtra also violated rules that required them to be paid before operating public charted flights. Xtra stopped flying charters for Direct Air on March 13 when Direct Air failed to pay the carrier all the money it was owed for operating flights that departed on or after March 3, according to the U.S. Department of Transportation . Xtra also had received late payments from Direct Air for several flights prior to March 3, that should have prompted Xtra to look and see whether Direct Air

1092-414: A scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make

1170-531: A secondary hub in St. Petersburg, FL, but closed the station in 2008. In winter 2009 they started flying from Melbourne, FL to Niagara Falls and Punta Gorda. In the 2010-2011 winter season they began operating flights from Palm Beach International Airport to several of their northern origin airports, including Worcester, Kalamazoo, and Rockford. In 2011 they became the first airline to offer commercial air service from Florida's Lakeland Linder International Airport since

1248-462: A single Boeing 737-400 . Initially, the company operated flights out of Guam to Saipan, continuing to Hong Kong. In the coming months, the company opened routes to Nagoya, Japan, and Koror, Palau. In November 2011, Sky King's parent company Aviation Capital Partners Group purchased a 51% stake. Fly Guam ceased operations at the end of 2011. The airline previously operated the following the aircraft: Chapter 11 bankruptcy Chapter 11 of

1326-417: Is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against a spouse or parent. Further, creditors may file with

1404-408: Is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at a profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit

1482-444: Is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as a tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In

1560-607: Is underfunded, which is also another violation of federal law. The maximum civil penalty is $ 27,500 per violation per day, but the total in Direct Air's case is still unknown, according to the DOT's court filings. On September 29, 2012, The Sun News wrote an article titled "Direct Air woes spread" and in the article that said that Sky King, Inc. which is a Lakeland, Florida based company who provided planes, pilots and crews to Direct Air, had filed Chapter 11 bankruptcy reorganization. The company's president blamed Direct Air for

1638-518: The Chapter 11 bankruptcy filing and in that filing says that Direct Air owed Sky King $ 1 million all this according to a report in the Lakeland Ledger . Sky King President Frank Visconti told the Lakeland Ledger that Direct Air owed then a significant amount of money when they the fuel company cut Sky King off. Sky King was one of eight carriers that flew Direct Air's routes for them. One of

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1716-472: The DOT said in its administrative claim to the fines accumulated prior to the case's conversion to Chapter 7. The civil penalty of $ 9,625,000 could be adjusted to a higher penalty after the DOT received flight information from Sky King, one of five carriers that flew flights for Direct Air, according to the court filing. The DOT is also looking into Direct Air's handling of a required escrow account that officials say

1794-627: The NBA 's Sacramento Kings . Initially, the company provided service for the Kansas City Kings in a single BAC One-Eleven under FAR-125. In 2002, Sky King received its FAR-121 certificate and 98% of the company's flying was for hockey teams. A series of events in 2005, including the NHL lockout, the devastation of Hurricane Katrina , and the spike in jet fuel prices required Sky King to find an alternate way of running its business. This resulted in

1872-552: The U.S. Department of Transportation issued a statement indicating that "The company has announced that it intends to restart operations as of May 15, 2012; however, the company currently does not have authority to do so." On March 16, 2012, Direct Air issued a press release stating that it filed for Chapter 11 bankruptcy protection. The public address on its home page was also modified to remove any indication that they would resume operation on May 15, 2012. Chapter 7 liquidation commenced on April 12, 2012. On August 21, 2012, it

1950-522: The U.S. Department of Transportation , who regulates charter operators such as Direct Air and tallied the civil penalties Direct Air according to federal rules isn't allowed to cancel flights less than 10 days before the scheduled departure unless it is physically impossible to fly as is what Direct Air did through March 24, according to the DOT. Direct Air should have also notified passengers that were scheduled to fly on 206 flights March 25 through April 11, when Direct Air's initial chapter 11 bankruptcy case

2028-474: The automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or the United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant

2106-643: The $ 10,000 payment from Tull is about the best the carrier's estate can expect. Two of the five original principal Direct Air partners—Kay Ellison and Judy Tull—were indicted in the United States Court for the District of New Jersey on January 17, 2016, on multiple counts of bank fraud, wire fraud and conspiracy in connection with Direct Air's demise. A third partner, Robert Keilman, had previously pleaded guilty in September 2015 to one federal count of conspiracy in exchange for cooperation with prosecutors. Keilman, aged 72 as of 2018, faces up to five years in prison and

2184-449: The 1970s. Florida Illinois Massachusetts Michigan New Jersey New York Ohio Pennsylvania South Carolina As Direct Air was a business classed as a virtual airline (economics) , it had no true aircraft fleet upon its own FAA / DOT operating certificate. Instead, the Direct Air business model used the services of the following airlines aircraft (as of March 14, 2010): On August 5, 2011,

2262-405: The Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if the debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If

2340-490: The Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate the development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout

2418-577: The US Department of Justice's official statement post-trial, defendants Ellison and Tull: "...stole passengers' money to try and prop up their failing company,” said Acting Assistant Attorney General (John P.) Cronan. “Their brazen scheme created a multimillion dollar shortfall that left passengers stranded at airports, and banks and credit card companies scrambling to pick up the pieces." and: "According to evidence presented at trial, from October 2007 through March 2012, Tull and Ellison engaged in

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2496-643: The United States Bankruptcy Code ( Title 11 of the United States Code ) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy , is available to every business , whether organized as a corporation , partnership or sole proprietorship , and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs

2574-401: The United States. Passengers were initially not given reasons for the abrupt cancellations. On March 13, 2012, a statement issued by Marketing Manager, Ed Warnek, indicated that flights would resume on Wednesday, March 14. Flight cancellations were attributed to a missed fuel payment. Further news releases on March 13 indicate that flights will not resume until May 15 at the earliest. On March 15,

2652-536: The adoption of the ACMI (Aircraft Crew Maintenance and Insurance) model and a partnership with Gold Transportation was forged. In March 2010, Sky King filed for Chapter 11 bankruptcy protection. Sky King emerged from this Chapter 11 bankruptcy in June 2011. Following a successful reorganization in June 2010, the airline moved its headquarters from Sacramento, California to Lakeland, Florida. By moving to Lakeland, Sky King

2730-433: The advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate a successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by

2808-577: The automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of

2886-411: The bankruptcy estate, so instead of trying to collect the full amount the trustee as proposed the $ 10,000 settlement, which still needs to be approved by a bankruptcy judge, but no court date had been set. Baldiga is still suing the other Direct Air founders including Marshall and Kay Ellison, Robert Keilmann and Ed Warneck in order to recover nearly $ 2.6 million in payments that the founders received from

2964-441: The best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to the confirmation hearing, a disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from

3042-433: The business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for

3120-463: The carrier before it abruptly stopped flying and filed for bankruptcy protection in March 2012. The trustee has also filed a racketeering complaint against Kay Ellison in which he claims that both Ellison and Tull fraudulently withdrew money from an escrow account that was supposed to help protect passengers’ fares in the event their flights did not occur. According to court documents the trustee said that

3198-512: The case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting the chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between

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3276-471: The classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or the plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes:

3354-530: The company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company." On November 28, 2018, Kay Ellison was sentenced in New Jersey to 94 months in prison and has been ordered her to pay $ 19.6 million in restitution. DirectAir CEO Judy Tull, as well as chief financial officer Robert Keilman, both await sentencing. Direct Air opened

3432-468: The company's president telling Lakeland Ledger the bankruptcy filling was led by Direct Air's demise, as Sky King was owed $ 1 million by the former carrier. The trustee that is in charge of the Direct Air case told WMBF News a local news station in Myrtle Beach said that there could even be criminal charges filed in relation to the investigation into Direct Air's bankruptcy On May 19, 2014, it

3510-442: The cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in the debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before

3588-408: The court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that the debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke

3666-442: The court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due, the bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company. All creditors are entitled to be heard by

3744-409: The court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to the exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed,

3822-436: The court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns the proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play a large role in many proceedings. Chapter 11 usually results in reorganization of

3900-406: The creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan. If a plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in

3978-427: The damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C.   § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and

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4056-602: The debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather

4134-413: The debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. The debtor in possession typically has the first opportunity to propose

4212-410: The debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize, the debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If

4290-423: The features present in all, or most, bankruptcy proceedings in the United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C.   § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business. Chapter 11 affords the debtor in possession

4368-724: The flight, again causing passengers to pass out as oxygen masks again failed to deploy. The flight returned, again, to Lakeland. There were no deaths, but at least one person was hospitalized with shortness of breath. Eventually, another plane was chartered to make the flight to Niagara Falls. Sky King, Inc. Songbird Airways, Inc. , established as Sky King , was a charter airline based in Miami, Florida . As Sky King , it operated flights from Florida to Cuba on behalf of Customer Service Providers (CSPs). Sky King also conducted flights of deportees to undisclosed destinations on behalf of U.S. Immigration and Customs Enforcement (ICE). In

4446-469: The flight. Oxygen masks on board failed to deploy, and several passengers passed out, complained of chest pains, shortness of breath, or other issues related to the loss of pressure. The flight returned to Lakeland. After landing in Lakeland, mechanics attempted to fix the plane, and it took off again approximately 5 hours later. The second flight experienced the same air pressurization issues 20 minutes into

4524-434: The judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving" the plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore,

4602-407: The judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that

4680-404: The next lower priority level may receive payment. Section 1110 ( 11 U.S.C.   § 1110 ) generally provides a secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by

4758-678: The other carriers who flew Direct Airs routes, World Atlantic Airlines , was fined by the United States Department of Transportation $ 180,000 in July because it abruptly cancelled flights without the proper notice to passengers as the USDOT requires. The USDOT had said that is continuing to investigate Direct Air as well as its carriers. The bankruptcy court is currently sorting through Direct Air's financial records . Investigators have already determined that there wasn't as much money in escrow accounts as there should have been or that

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4836-416: The past, the airline provided charter service to sports teams and businesses using Boeing 737 aircraft sporting various seat configurations. The airline filed for Chapter 11 bankruptcy protection on March 9, 2010, after it was unable to meet the payment demands of one of its largest creditors, fuel supplier Mercury Air Group. The airline began operations in July 1990 as a privately held company to fly for

4914-402: The process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides a reorganization process for the majority of private individuals. When a business is unable to service its debt or pay its creditors , the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7,

4992-421: The proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. If at least one class of creditors objects and votes against the plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over

5070-605: The purposes of consumer protection as mandated by United States Department of Transportation guidelines governing Public Charter air services, and as laid forth in the Public Charter Operator-Participant Contract. Upon examination it was alleged that this account which should have contained approximately US$ 30 million at the time of Direct Air's cessation of operations in March 2012 then contained only an approximate $ 1 million. Kay Ellison and Judy Tull maintained their innocence and mounted

5148-545: The reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In a Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt, a process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on

5226-458: The same time, Sky King again filed for Chapter 11 bankruptcy protection and laid off over 20 pilots, 30 flight attendants, and others in operations, maintenance, and the Lakeland office. In December 2013, Sky King furloughed/laid off nearly half of its staff across all departments and returned one airplane to the leasing company. As of December 31, 2013, Sky King had two airplanes in its fleet, one of which had been grounded for several months with

5304-586: The season, the flying switched from Palm Beach International Airport (during summer), Myrtle Beach (during winter), Punta Gorda (during fall), and Lakeland (year-round). Direct Air abruptly ceased operations on March 13, 2012. Sky King provided charter aircraft to numerous touring agencies with flights into Cuba . Flights to Cuba originated from Miami and Tampa . The majority of the flights into Cuba were to Cienfuegos, Havana, Camaguey, Holguin, and Santiago de Cuba. In early spring 2011, Sky King agreed to provide ACMI service to start-up company Fly Guam , flying

5382-585: The space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it

5460-491: The study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However, a 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history

5538-583: Was able to reduce its maintenance costs (by eliminating cross-country ferry flights) and focus on expanding the East Coast markets it served. In October 2010, Sky King was purchased by Aviation Capital Partners Group and shifted its focus away from private charters and towards providing scheduled services. At the end of 2010, Sky King had over 270 employees. At the end of August 2012, Sky King returned three aircraft to its owner, AerSale , in Roswell, NM. At

5616-523: Was acquired by AerLine Holdings LLC on October 24, 2014. Sky King was acquired by AerLine Holdings LLC on October 24, 2014. Service was resumed on December 22, 2014, after the United States Department of Transportation found the carrier "fit, willing and able" to resume service with up to ten aircraft. On August 30, 2017, Songbird entered into an agreement with USGlobal Airways for the purchase of Songbird's stock for $ 6.5 million with

5694-415: Was announced that Direct Air had racked up $ 9.6 million in federal rules violations during the spring when Direct Air abruptly canceled about 350 flights according to its fillings in bankruptcy court. Between March 15 and March 24 Direct Air canceled 144 flights and another 206 flights between March 25 and April 11 that violated federal rules that are aimed at protecting passengers according to a filing made by

5772-411: Was converted to Chapter 7 liquidation , that their flights had been canceled. Federal rules require that charter operators notify each passenger in writing within seven days after the cancellation but not less than 10 days before the scheduled flight. "No circumstances of physical impossibility existed during that 10-day period that would have prevented [Direct Air] from performing the scheduled flights,"

5850-492: Was following the federal rules, said a DOT Aviation Enforcement Office. The DOT also requires carriers to make a reasonable effort to ensure that the charter operators they fly for are obeying the federal rules. Xtra is the second of Direct Air's eight carriers to be fined by the DOT, with the first one being World Atlantic Airlines which was fined $ 180,000 in late July. Another one of Direct Air carriers Florida-based Sky King, has filed for Chapter 11 bankruptcy reorganization, with

5928-448: Was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as a new company with a similar name. ‡ The Enron assets were taken from

6006-498: Was reported that the trustee in Direct Air's bankruptcy case has agreed to drop a racketeering lawsuit against Direct Air's former chief executive officer in exchange for a $ 10,000 payment or about 1.5 percent of the total amount that she owes, according to court documents. The trustee, Joseph Baldiga, says that he doubts that he will be able to collect the $ 657,252 that Judy Tull, Direct Air's former chief executive officer, owes to

6084-475: Was thought to be in the account, but they are still sorting through all the details. On October 2, 2012, it was announced Tuesday that a second carrier of the now defunct Direct Air was fined for abruptly canceling flights in March that left hundreds of vacationers and other travelers stranded. Xtra Airways was fined $ 300,000 by the U.S. Department of Transportation because Xtra Airways cancelled flights less than 10 days before departure and for not ensuring

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