World Airways and North American Airlines parent Global Aviation Holdings has again filed for US Chapter 11 creditor protection in order to restructure its finances.
The company took similar action in early 2012.
Under the latest measure it will cut some 16% of its workforce over the next three months in order to lower its cost base.
Global Aviation provides charter services to the US military as well as passenger and cargo transport, but cuts in the freight sector – both civil and military – have forced it to take action.
“We intend to use the reorganisation process to help implement our plan to lower costs, stabilise our businesses, grow revenue and diversify our product lines,” says chief executive John Graber.
He says the Chapter 11 filing will enable the company to reduce its debts and put in place operational changes.
Global Aviation has filed to the US Bankruptcy Court for the District of Delaware.
North American Airlines uses Boeing 767-300ERs to conduct passenger charter flights while World Airways has a fleet of Boeing 747-400s and MD-11s for passenger and freight services.
“Regrettably, as a result of a necessary reduced fleet size and as a part of this reorganisation, jobs will be impacted,” says Graber.
Global Aviation has obtained debtor-in-possession financing from its first lien lenders, the company says.
If the court approves its action, says the company, it will use the new financing as well as its own cash to support the business as it restructures.