Pro Air Files for Chapter 11 Bankruptcy
D E T R O I T, Sept. 20 -- One day after being grounded by the Federal Aviation Administration, discount carrier Pro Air Inc. announced Tuesday night that it filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The airline said it would appeal the FAA order forcing it to suspend operations at midnight Monday.
“We are taking Chapter 11 action at this point to preserve our existing resources, including our fleet of aircraft,” Pro Air president Craig Belmondo said in a written statement.
“We are confident that we will be resuming scheduled operations following completion of the appeals process, and we need to be in the position to recommence scheduled operations on an expedited basis,” he said.
The struggling 3-year-old airline operates three Boeing 737 aircraft from Detroit City Airport. It has faced increasing financial problems.
The FAA revoked Pro Air’s operating certificate Monday. “Continuing maintenance, oversight, quality control and record-keeping problems resulted in widespread failures to comply with applicable federal aviation regulations,” the agency said in a news release.
Appealing a Federal Order
In filing its appeal Tuesday, Pro Air said the federal agency’s order was “issued erroneously and was based on incorrect and outdated information.”
An appeal would be to an administrative law judge for the National Transportation Safety Board, said FAA spokesman Eliot Brenner.
On Tuesday, Fort Lauderdale, Fla.-based Spirit Airlines said it would honor confirmed Pro Air tickets for travel on a standby basis between Detroit and Orlando, Fla., or New York’s LaGuardia Airport through Sept. 30.
Passengers would be eligible for transportation only on the date of their confirmed ticket with Pro Air, Spirit said. Those with proof of Pro Air tickets were required to check flight availability at least 90 minutes before departure of the Spirit flight from Detroit Metropolitan Airport.
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