Claims that bankrupt airline will restart just not true, former head says

Saturday, 28 September 2024

Claims that bankrupt airline will restart just not true, former head says

by BD Banks

It has not been a particularly good year for airlines that declare bankruptcy.

Air Malta, Armenia’s FlyArna, Britain’s Flybe, Canada’s Lynx Air and Jetlines — and Antigua and Barbuda’s LIAT — are just some of the airlines that ceased operations entirely in 2024. A number of other names have also filed for bankruptcy protection while continuing to work with creditors on plans that would allow them to stay afloat.

In June 2024, the United Caribbean Airlines B.V. and JetAir Caribbean B.V. airlines that operated jointly under the name JetAir formally declared bankruptcy in the Court of First Instance of Curaçao over rising debts that they were not able to repay.

The airline was frequently used to shuttle locals and tourists to nearby Caribbean islands such as Aruba and Sint Maarten but all scheduled flights were abruptly called off by June 18.

When JetAir went bankrupt, all existing flights were called off

“In consultation with the board, the trustees have decided to cease all current flight operation,” the airline announced at the time. “This means that all flights are canceled, and JetAir’s aircraft will remain grounded as of June 18th.”

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As JetAir representatives had formerly said they were working with creditors to explore the possibilities for a potential restart, local social media has been buzzing with whether such a restart was on the horizon. Some reports claimed that certain tour operators affected by canceled flights were already given payments.

Director on possible JetAir restart: ‘No clue’ and ‘bankrupt with all assets’

But former JetAir Director Antonio Ribeiro told local outlet Amigoe Nieuws that the airline “went bankrupt with all its assets” and he has “no clue” if and when it will be able to return to operations.

“The idea that the company has resources to make payments is, in his view, incorrect,” the Curaçao Chronicle reports. “Although he remains in contact with the trustees, Ribeiro did not disclose why these discussions are ongoing or what their ultimate goal is.”

The trustees in question are local law firm HBN attorneys Stan van Liere and Robbert Vriezen. At the time, they reported that the bankrupt airline’s trust was working with liquidators.

An autonomous territory under the Kingdom of Netherlands, Curaçao is home to just under 150,000 permanent residents, but attracts nearly half a million tourists every year as a Caribbean holiday destination.

The Willemstad port with its colorful houses has always made it a popular stop for cruise ships and those sailing through the area but, in recent years, airlines have also started launching flights to an island that previously relied on only a few select international routes usually taken by Dutch tourists to the island.

Delta (DAL) and United (UAL) have both launched new Curaçao flights from different U.S. cities, while international airlines such as Azul Brazilian Airlines (AZUL) and Surinam Airways have also upped the frequency of existing routes to, in the former’s case, a daily flight between Curaçao and Fort Lauderdale.

The latter, which is the flagship carrier of the Caribbean nation of Suriname, announced new direct flights between Curaçao International Airport (CUR) to Miami and Chicago at the end of last year.