MROAM: Pemco to shutter Dothan operations on 1 June

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Pemco plans to close its 90-acre aircraft conversion facility in Dothan, Alabama on 1 June as part of Chapter 11 financial restructuring, CEO Bill Meehan confirms to Flightglobal.

Pemco announced on 5 March when it filed for bankruptcy that it was reviewing the possibility of a "prompt closure" of operations in Dothan, one of three major bases for the company in the US.

Speaking on the sidelines of the MRO Americas conference on 4 April, Meehan confirms the company has decided to shut down the Dothan facility.

Compared to its maintenance facilities in Tampa, Florida, and Erlanger, Kentucky, the Dothan operation was more remote, which made it harder to attract customers and handle logistics, Meehan says.

The Dothan facility still has three aircraft ordered by National Airlines in various stages of completion, he adds. The company intends to shut down the facility on 1 June, but the precise timing will be driven by how fast those aircraft are completed, he says.

Aircraft conversion work will be shifted to Pemco's partners in Asia, while the Tampa and Erlanger facilities will continue to focus on maintenance operations, Meehan says.

Meanwhile, the company is one-third of the way through a 90-day restructuring period, he says. A court hearing is scheduled today, he says, where the company will submit its critical vendor list.

"Everything is on track," he says.