GLO Airlines, a New Orleans public charter airline that offers nonstop flights to Destin, Fla. among other regional destinations, has filed for bankruptcy protection. The filing is the latest development in a dispute between the airline and the company that operates its planes.
FlyGLO LLC, the airline’s parent company, filed Sunday (April 24) in federal bankruptcy court in New Orleans, asking a judge to allow it to continue offering flights beyond Thursday, the date its flight management company has said it intends to cancel its contract with the airline.
The management company claims GLO has fallen behind on payments it is owed. GLO in a Monday statement called the decision to cancel the contract “entirely unjustified” and blamed the management company for violating contract terms and providing poor service.
It is not yet clear what will happen to GLO customers who purchased tickets for flights after Thursday if a judge lets the contract dissolve. The airline’s statement sought to reassure customers its business model is sound, but offered few details as to what would happen to ticket holders who could be affected by the dispute.
“We are taking this step now because we value our customers too much to provide inferior service,” CEO Trey Fayard said in the statement. “It was a difficult decision, but a necessary one to protect everyone involved. We look forward to promptly and successfully emerging from reorganization in the near future.”
In an emailed response to questions, GLO President Staacy Cannon said the airline is “working to keep
Article source: http://www.nola.com/business/index.ssf/2017/04/glo_airlines_files_bankruptcy.html