Gulfstream International Files for Chapter 11

Brazilian_Pilot

Brazilian_Pilot

Well-Known Member
These guys couldn't make it with a paying pilot geeezzz!!!

http://www.ainonline.com/news/singl...eam-international-files-for-chapter-11-27156/

Gulfstream International Files for Chapter 11
By: Gregory Polek
November 4, 2010
Regional Airlines, Air Transport and Cargo


Gulfstream International Group, the parent company of Fort Lauderdale, Fla.-based Gulfstream International Airlines, filed for Chapter 11 bankruptcy protection today in an effort to restructure its debt and secure long-term financing. Gulfstream said the filing, registered with the U.S. Bankruptcy Court for the Southern District of Florida, would not affect its flight schedule.

“We are operating our full schedule of flights and honoring all tickets and reservations,” said David Hackett, Gulfstream president and CEO. “Our passengers and employees are not impacted by this legal filing.

Gulfstream said it has arranged for up to $5 million in debtor-in-possession (DIP) financing from Victory Park Capital Advisors, an alternative asset management firm with headquarters in Chicago, subject to court approval. “This represents the first step in securing the right long-term financing, which would allow us to acquire our fleet of aircraft, improve our cost structure and position us for future growth,” said Hackett.

Gulfstream asked the bankruptcy court to allow it to pay all of its approximately 600 employees any pre-petition wages and continue all wage and benefit programs. The company does not anticipate any layoffs directly related to the filing.

Gulfstream operates some 150 daily flights with its 23 nineteen-seat Beech 1900D turboprops to 18 destinations in Florida and the Bahamas and six destinations from Cleveland under the DOT’s Essential Air Service program. “While we have seen strong year-over-year improvements, the impact of our borrowing in the last several years to cope with consistently high fuel costs and the economic impact of declining traffic made it too difficult for the company to continue to meet its debt repayment needs,” said Hackett. “Essentially, the company needed additional financing and investment to continue to meet debt requirements and fund current operations.

Gulfstream received strong interest from a number of investment sources; however, all of them noted the need to restructure the balance sheet through Chapter 11 prior to making those investments.”
 
Hehe. I agree with surreal, liquidation would have been even better news.

PS: In a related story, Pinnacle is purchasing Gulfstream and I'll be the new CP for the 1900 fleet. My dream as come true.
 
CP??? You're going to be a 1900 FO again!! But with the merger they're allowed to keep status quo until a new contract is created so you'll have to pay them.
 
Yahoo!

Gee.. does this mean that they can't sell the job anymore?

Perhaps they haven't been selling as many lately.

Aww.. my quotations are out of date already. :D
 
I was just about to buy some turbine time! Anyone know where else I can buy some?
 
I think that the Chapter 11 may have something to do with the new cockpit door law. As of January 2011 all Part 121 Aircarrier aircraft must have securable reinforced cockpit doors. The law has been in effect for a while but no one will be able to get around it this time.

The doors weigh a lot and between the weight and the w&b issues the front 4 seats in the airplane would be unusable. Thats a lot when you consider it only carries 19. Just my 2 cents. Discuss
 
Pilotforhire587 said:
I think that the Chapter 11 may have something to do with the new cockpit door law. As of January 2011 all Part 121 Aircarrier aircraft must have securable reinforced cockpit doors. The law has been in effect for a while but no one will be able to get around it this time.

The doors weigh a lot and between the weight and the w&b issues the front 4 seats in the airplane would be unusable. Thats a lot when you consider it only carries 19. Just my 2 cents. Discuss
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Hopefully they are out of business before it comes to that...
 
Pilotforhire587 said:
I think that the Chapter 11 may have something to do with the new cockpit door law. As of January 2011 all Part 121 Aircarrier aircraft must have securable reinforced cockpit doors. The law has been in effect for a while but no one will be able to get around it this time.

The doors weigh a lot and between the weight and the w&b issues the front 4 seats in the airplane would be unusable. Thats a lot when you consider it only carries 19. Just my 2 cents. Discuss
Click to expand...


Well if that's true...I wonder how this will affect the 'Lakers here?
 
Just playing devil's advocate here, but a lot of the CAs at GIA (as I understand it) are street hires, and never paid to raise the gear. I'm not sorry to see GIA in trouble any more than I'd be sad to see Mesa in trouble, but I imagine there are regular joes who are feeling the pinch right about now.

That said, Chapter 7 for Christmas!?
 
I don't feel bad for them a bit! I got laid off just before Christmas. Aren't you the one who always goes on about "do your research before you work for them.......THEY SUCK!"
 
I believe their Chapter 11 has more to do with the poor load factors they have been experiencing as other carriers put larger and newer planes on the routes that Gulfstream had been flying. While most regionals have been making money over the last 20 months, Gulfstream has been losing money since the leveraged buyout. It will probably take a merger, or a new feeder contract, to save them. Both could be game changers. But without a merger or new feeder contract, it's impossible to compete with Beech 1900's against larger jet aircraft.



Joe
 
Gulfstream Int'l Airlines files Chapter 11

Gulfstream International Files for Chapter 11
11/4/10, 4:52 PM EDT ABC News

Gulfstream International Group Inc., which operates a regional feeder airline and an aviation training school, said on Thursday that it has filed for Chapter 11 bankruptcy protection.

The company said its flights would continue as scheduled. It operates 23 Beech propeller planes that carry 19 passengers. The flights generally connect smaller towns to larger airports, many of them for United Continental Holdings Inc.

Gulfstream said the filing was prompted by borrowing in recent years "to cope with consistently high fuel costs and the economic impact of declining traffic," which made it difficult to pay its debts. CEO David Hackett said in a prepared statement that it has received "strong interest from a number of investment sources" but they all wanted the company to restructure its debt before they invest.

In June 2009 the Federal Aviation Administration said it would seek a $1.3 million civil penalty against Gulfstream's airline, saying it violated regulations on how many hours pilots and dispatchers can work, and improperly maintained equipment.

The airline said at the time that the problem was confusing records and not broken rules. It settled with the FAA for $550,000 in July. Gulfstream spokesman Bruce Hicks said the fine was not a factor in the bankruptcy filing.

Gulfstream also came under scrutiny last year because the pilot of a Colgan Air flight that crashed into a house in Buffalo in February 2009 had trained at Gulfstream's academy and flown for Gulfstream's airline before joining Colgan.

The bankruptcy filing in the Southern District of Florida covers the parent company as well as the airline and Gulfstream Training Academy Inc. The company said it employs about 600 people, and does not expect any layoffs because of the filing.

Gulfstream shares lost most of their remaining value after the bankruptcy filing. After closing on Wednesday at 55 cents, they fell 39 cents to close at 16 cents.
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The Great Mistakers on here work for a descent company, For some time now they have been working on transitioning to the E120. Shouldn't present a problem. I hope they go under man, I would feel bad for the guys but maybe CommutAir would pick up their routes for CAL out of CLE with the Dash 8. If they do it would be good news for me.
 
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