Miami Air International has been forced to cease operations amid struggles during the global health crisis. Additionally, the charter airline is set to go into liquidation this week, impacting the jobs of 350 employees.
On March 26th, the carrier filed for Chapter 11 bankruptcy protection. This process was done only a few weeks after stricter restrictions were put into place within the United States.
According to law specialists Spohrer Dodd, the airline was already financially accountable for a major plane crash that happened last year. Last May, Miami Air Flight 293 crashed into St. John’s River in Florida, injuring 21 of the 140 passengers on board.
Subsequently, the mounting losses have proved to be too much for the firm. Despite requesting just under $10 million of government aid on April 3rd, there has not been any update on its application.
Support was needed
Business Insider reports that the Association of Flight Attendants-CWA (AFA) represents 150 of Miami Air’s 350 members of staff. Union president Sara Nelson confirmed that, following operational suspensions, Miami Air plans to file for Chapter 7 bankruptcy protection this week. Additionally, she claims that the US Treasury Department ignored support requests. She said,
“Congress took action in the period of a week to save these jobs and create a $25 billion safety net for aviation workers, including the 350 at Miami Air. Mnuchin actively ignored Miami Air’s less than $10 million dollar payroll grant application for six weeks, and instead pushed the company off a cliff.
“On Friday, workers received their last paycheck and learned the current owners plan to file for Chapter 7. Mnuchin can either get the payroll grant out the door today to protect these workers through September 30, or sign the pink slips himself.”
End of an era
The Florida outfit usually operates a fleet of six Boeing 737-800 aircraft on its services. Since August 1990, it has flown sports teams, the government, the military, political campaigners, performers, and medical professionals.
Sport and entertainment activity is low amid all the restrictions. Therefore, the need for a service such as that offered by Miami Air is minimal in the current climate.
After failing to land funding, the company’s options became limited. Airways reports that CEO Kurt Kamrad told his employees that it had been an honor to work with them and wished them all the best of luck in the future. Altogether, it is going to be a long summer for airlines across the globe. Several other operators are also facing tough decisions while the world tries to handle the impact of the pandemic.
What are your thoughts on what Miami Air is going through? Has this news impacted you? Let us know what you think in the comment section.