Arrow Air, the largest all air cargo carrier based in Miami, shut down operations on 1 July and filed for bankruptcy, following months of financial turmoil.
"Like many companies in our industry, Arrow Air has experienced significant operating losses as a result of increasing operating costs and declining revenue," the company says in a statement. "The decision was not made lightly and was a last resort after the company exhaustively searched for other options including financing or a sale of the business." The company said it would focus on helping to "smooth the transition" for the estimated 450 employees who are now out of work.
News reports say the company posted an operating loss of $26 million in 2009 and lost $28 million in 2008. In court papers, Arrow listed as much as $500 million in debt, with assets of $50 million. The company had successfully exited bankruptcy in 2004 through reorganisation.
Arrow Air, founded in 1950, operated more than 60 flights each week to and from Central and South America and the Caribbean, serving an estimated 3,500 customers worldwide, according to the company's website. It operated DC-10s, but was granted certification in May 2009 from the FAA to fly Boeing 757-200s.
The company is maintaining operating authority and the potential of flying charter operations in case a potential purchaser steps forward during bankruptcy proceedings.