Wet lease specialist World Airways, which lost $11 million last year, may delay a multi-million-dollar interest payment due before the end of this month, prompting renewed speculation about its future.
The airline and financial advisor CIBC World Markets are considering whether to delay a payment of about $1.7 million on $43 million of 8% convertible debentures, due on 26 August. New chairman Hollis Harris also plans to slash the wages of many staff by 10% over 16 months, but may offer them shares.
At the heart of the carrier's slide is weak charter demand, coupled with the high capital requirements of leasing its 10 aircraft. The airline is restructuring lease terms on eight Boeing MD-11s and phasing out McDonnell Douglas DC-10s. It plans to refocus on cargo charters.
Source: Flight International