US passenger and cargo charter operator Tower Air has filed for Chapter 11 bankruptcy protection after laying off 300 workers - 18% of its workforce - as it restructures in a bid to reverse potentially fatal losses.
Tower chairman and chief executive Morris Nachtomi says the carrier will continue flying, although its limited scheduled services have been hit, with flights linking its New York Kennedy base with Fort Lauderdale and San Francisco cancelled and services to Los Angeles reduced. Other scheduled services within North America, and to Athens, Paris and Tel Aviv, are unaffected
GMAC Business Credit has agreed to provide an $18 million facility while Tower negotiates with major creditors.
Source: Flight International