Glo Airlines, a New Orleans startup public charter operator that offers flights at the Bill and Hillary Clinton National Airport, has filed for bankruptcy reorganization.
According to a petition filed today in the U.S. Bankruptcy Court for the Eastern District of Louisiana, Glo is filing Chapter 11 reorganization, listing between $10 million and $50 million in debt and $10 million and $50 million in assets.
AL.com reports that the company announced the move this morning, saying its direct air carrier/aircraft operator, Corporate Flight Management Inc. of Smyrna, Tennessee, had “failed on its contractual obligations to deliver quality performance and solid management of GLO’s program to provide air service to chosen markets.”
According to AL.com’s report:
“After raising serious concerns over its performance and business practices, rather than find solutions, the air carrier unilaterally terminated its contract to operate GLO’s program and fly passengers,” the company said. “This entirely unjustified action has put GLO’s operations and the financial health of many of GLO’s partners at risk.”
GLO said bankruptcy protection allows the company to “reorganize the business, protect jobs, and continue to fly.” Spokesman Jordan Mitchell said the reorganization is underway.
New Orleans City Business reports that founder and CEO Trey Fayard aims to “promptly and successfully” emerge from reorganization “in the near future.” He called the action “a difficult decision, but a necessary one to protect everyone involved.”
A hearing in the case is set for tomorrow; Glo is seeking court approval for a $750,000 loan to continue operations while it sorts out its affairs. It said it moved more than 32,000 passengers through New Orleans last year and was on track to move about 40,000 through the city this year.
Fayard founded GLO Airlines in New Orleans in 2013, and the regional airline began operations in November 2015. In 2016, he told Arkansas Business that the Gulf and Mid-South regions “have been underserved by air carriers for a long time, resulting in an overreliance on road travel.” Glo aimed to fill a need for affordable, regional air travel, providing services in Little Rock; New Orleans; Memphis; Shreveport, Louisiana; Huntsville, Alabama; Fort Walton Beach, Florida.
Arkansas Business contacted Glo for comment but has not received word back. We’ll update when we do. (Update: Glo has reinstated all flights after reaching an agreement in bankruptcy court.)
Meanwhile, Fayard is scheduled to speak tomorrow at the regular weekly meeting of the Little Rock Rotary Club at the Clinton Presidential Library. (Update: No surprise — Fayard has had to cancel is appearance at the Rotary Club.)
Update: Clinton Airport spokesman Shane Carter said Glo told the airport late last week that “operational changes” would temporarily halt Glo flights from April 28 to the beginning May.
Glo currently offers a flight to New Orleans and, beginning May 5, had planned to resume a popular summer route to Destin, Florida.
Carter said the airport has been pleased with Glo’s level of service, and that the New Orleans flight has been popular. He said the airport hopes the company’s issues are resolved to minimize any passenger inconvenience.
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