Miami Air International (Miami International) is set to be liquidated after failing to secure the renewed investment needed to refloat the debt-stricken Florida-based ACMI/charter operator.
Miami Air filed for Chapter 11 bankruptcy protection in March this year amid a hunt for new investment. However, President and Chief Executive Kurt Kamrad said in a communique to staff on Friday, May 8, that despite a "great deal of effort" over the past several weeks, including discussions with numerous transaction partners, no rescue financing had been secured.
"As many of you heard in today's [May 8] court hearing, ...Miami Air, unfortunately, has not received a viable proposal to acquire the assets of Miami Air, or to fund its operations going forward," he said. "Therefore, today will be the last day of employment for all Miami Air employees."
With no prospect of resuming operations, Miami Air now goes into Chapter 7 liquidation wherein its total assets will be disposed of and proceeds distributed to creditors which include the Defense Finance and Accounting Service (DFAS), KLM Royal Dutch Airlines, Boeing, Delta Air Lines, and Montego Bay Airport.
Miami Air operated a fleet of six leased B737-800s, the bulk of which have already been repossessed by their respective owners. A seventh B737-800, N732MA (msn 30618), was involved in a runway excursion incident in May last year. Although no deaths were reported, the accident resulted in a litany of lawsuits against the airline.
