The Peachtree City-based Global Aviation Holdings Inc. – the nation’s largest charter air provider for the U.S. military – has filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code, the company announced.
In a news release dated Sunday, the parent of World Airways Inc. and North American Airlines Inc. said it had filed Chapter 11 in the U.S. District Court, New York, “to achieve a cost and debt structure that is industry competitive and continue to provide outstanding service to its customers.”
Global Aviation has at least 300 employees based at its Peachtree City headquarters, according to company spokesman Steve Forsyth. He said that at least several employees at the headquarters where notified Monday that their jobs have been eliminated, however, he wasn’t able to confirm how many total jobs have been cut locally or nationally.
The company has a combined fleet of more than 30 cargo and passenger aircraft.
Besides carrying service personnel, Global flies for U.S. corporations, presidential campaigns, the White House press corps, and entertainers and production companies.
In the news release, Global Chairman and CEO Robert Binns said the company had worked with lessors, bondholders and other creditors during the past year to reduce certain obligations.
Now, Binns said, “the company needs to complete its comprehensive restructuring due to having too large a fleet, labor costs that exceed industry standards given the current global economic environment, and the necessity to align the capital structure with the size of the company."
“We are committed to working as quickly and efficiently as possible to appropriately restructure Global so that it can emerge from Chapter 11 as a strong company, well-positioned to compete effectively in the marketplace," Binns said.
