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8-Feb-2016 7:34 AM

SeaPort Airlines files voluntary petition for chapter 11 reorganisation

SeaPort Airlines filed (05-Feb-2016) a voluntary petition for chapter 11 reorganisation in the US Bankruptcy Court for the District of Oregon, after its board of directors determined "reorganisation is the best path forward". The carrier believes the move will help it achieve long-term viability while maintaining its ability to provide air service to customers and communities, noting the decision came after it took a number of necessary steps to reduce its route network as a result of a national pilot shortage. SeaPort advised day-to-day operations will not be interrupted by the filing, and expects to continue to:

  • Pay vendors for goods and services received during the reorganisation process;
  • Operate a full schedule of flights;
  • Honour existing tickets and reservations, while providing refunds and exchanges per its contract of carriage;
  • Maintain interline agreements with Alaska Airlines and Hawaiian Airlines.

SeaPort president and CEO Rob McKinney has resigned from his position, with EVP Timothy Sieber elected to succeed him as president. Under court supervision, SeaPort will propose a plan of reorganisation that will allow it to "emerge a strong and viable airline positioned to meet the challenges not only of the pilot shortage, but of the highly competitive airline industry." [more - original PR]

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