Miami-based Arrow Cargo says it is actively engaged in confidential discussions with investors as it warns employees of potential layoffs.
The company confirmed the investor discussions in an emailed statement to ATI and Flightglobal, and also says that it alerted its employees to possible layoffs to comply with the US worker adjustment retraining notification act (WARN).
The Miami Herald is reporting that Arrow Cargo's parent company Arrow Air told state officials late last week that it could permanently cease all operations.
Data from the US Department of Transportation show that Arrow Air posted a $34 million loss for the four quarters ending at the end 2009's third quarter, and an operating loss of $37 million.
In July 2008 US investment firm MatlinPatterson acquired an 85% stake in Arrow Air, and said it would expand Arrow's fleet with Boeing 757s late in 2008 and Airbus A330s in early 2010.
Flightglobal's ACAS fleet database shows that Arrow Cargo operates three Boeing 757-200s, one McDonnell Douglas DC-10-10F, four DC-10-30Fs, a single MD-11F and one Rockwell Sabreliner 60.