Miami Air International (LL/BSK) has filed for Chapter 11 Reorganization. The carrier solely operated charter flights, both on behalf of other airlines and for sports teams, large events, tours and more.

However, the carrier’s main market effectively evaporated with the onset of the COVID-19 crisis. One of the carrier’s main markets, sports teams, have stopped flying due to the outbreaks, with many leagues canceling entire seasons of game play. Larger airlines which offer sports charter services on the side, such as Air Canada have already grounded the aircraft used for such flights, however Miami Air relied on these services to create a large portion of the carrier’s income. Other airlines have also stopped chartering Miami Air planes, as the majority of airlines have vastly reduced flight schedules, with some having suspended operations entirely. Finally, the tourism market has been entirely grounded by a combination of COVID-19 – related infection fears as well as political bans on non-essential international travel.

Left without a market to operate in, Miami Air had no choice but to file for Chapter 11 reorganization. Chapter 11 is a form of bankruptcy protection in the United States, where the company in question is given the opportunity to reorganize its assets and operations and is given another chance at re-starting. However, this means that Miami Air will not be operating any services whatsoever during this time, such as rescue flights for citizens of various countries trapped abroad, or other government charter services.

Miami Air was founded in 1991 with leased Boeing 727-200 aircraft. The carrier quickly expanded in the charter business, and soon replaced the 727s with newer Boeing 737-400 and 737-800 aircraft. At the time of the Chapter 11 Reorganization filing, the carrier operated six 737-800s in two different configurations – one all-economy configuration intended for tourism and military charters, and one more premium-heavy configuration intended for sports teams and business charters.

Since the carrier has not entered into full bankruptcy proceedings, there is a chance that it will return to the skies after it has sorted out its financial woes. However, the airline will have a long way to go to return to flying, as it will have to have a more stable market to return to, as well as a plan for retaining a positive cash flow. This means that the carrier will not return to the skies until after the COVID-19 crisis is completed, as that will be the earliest point at which it will have a market to operate in.

Featured image courtesy of Martin Tietz / Aeronautics Online