Guilford Transportation Industries, which operates Pan American World Airways as a charter carrier, appears ready to start scheduled airline service through the acquisition of two financially troubled US airlines.
Miami-based Pan Am was acquired in a federal bankruptcy court by Guilford, a regional rail concern, last June. In March, Guilford was ready to provide Newark, New Jersey-based Kiwi International Airlines with a $3 million cash infusion in anticipation of a bid for the assets of the airline. The airline was then grounded by the US Federal Aviation Administration, however, over safety issues. Guilford remains interested in Kiwi if it can regain its operating certificate.
The FAA has agreed to suspend rather than revoke Kiwi's operating certificate pending completion of an expedited revalidation review. Kiwi says the process could take about 120 days, if financing is found. "We will be completing the revalidating process while reorganising our structure and pursuing financial options," the airline says.
Meanwhile, David Fink, president of Guilford Transportation, is heading a new company to acquire Georgia-based Nations Air Express, which filed for Chapter 11 bankruptcy protection last October. Fink says Nations Air's scheduled service certification "represents a strong base on which to build".
Mark McDonald, Nations Air's president and chief executive, plans to remain with the reorganised airline as it expands its fleet and re-establishes its position as a low-cost domestic scheduled airline.
Source: Flight International
