Florida Regional Airline Continues Normal Flight
Gulfstream International Airlines, a regional carrier which
operates flights from Fort Lauderdale, FL to destinations in
Florida and the Bahamas, as well as flights from Cleveland, OH, has
filed for reorganization under Chapter 11 bankruptcy rules.
Gulfstream executives say that all flight operations are continuing
on a normal schedule. The airline operates a fleet of 23 Beechcraft
Gulfstream said the filing in intended to allow the company to
restructure its debt and secure long-term financing.
The Wall Street Journal's Market Watch reports that the
company has had to borrow heavily over the past several years to
cope with rising fuel costs and a sagging economy. Gulfstream
president and CEO David Hackett said the airline has made "strong
year-over-year improvements," but economic factors have made it
impossible to continue servicing the debt it has accumulated. He
said the company is receiving "strong interest" from potential new
funding sources, but all have said the company would need to
restructure its debt before they would consider investing.
No layoffs have been announced, and Hackett said one of the
goals of the restructuring is to "ensure a great future for our