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Silver Airways filed for Chapter 11 bankruptcy protection today. The regional airline has long struggled and hopes that this reorganization will help it to “ensure a sustainable future” and “secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline.” This is not the first time Silver has had financial difficulties.
In April 2023, I wrote about how Silver Airways had not paid its rent at Fort Lauderdale-Hollywood International Airport (FLL) since 2021. Silver Airways allegedly owed $957,750.17 after its $113,634 security deposit was deducted. Fort Lauderdale-Hollywood International Airport (FLL) is Silver Airways biggest hub. The airline is owned by a private equity firm (Versa Capital Management), so its finances are not public. This was apparently not resolved and other debts have weighed down the regional carrier further.
Silver Airways now reportedly owes a significant sum to the Internal Revenue Service (IRS), both Orlando International Airport (MCO) and Fort Lauderdale-Hollywood International Airport (FLL), as well as its aircraft lessors.
I’m generally a fan of Silver Airways (although I did have a severe delay back in May and just decided to drive home). The US-based, regional airline operates flights throughout Florida, the Bahamas, and the southeastern United States. The airline operates a fleet of eight ATR 42-600 and six ATR 72-600 turboprop aircraft and makes it easy to get between cities in Florida and the Caribbean.
An open letter to customers detailed what to expect during its bankruptcy protection. Here is what passengers can expect:
- All tickets remain valid and Silver Airways will continue operating as usual
- Passengers can book flights with Silver through its website or any other channel
- United and JetBlue customers, including loyalty program members, will experience no disruptions to their bookings or services
- Tickets purchased through any other airline or agency will be honored
Silver Airways expects the process to be complete in Q1 2025 and says that it will be “emerging stronger and ready to continue serving you with the same dedication we’ve upheld for over 13 years.”
Anthony’s Take: Silver Airways has been struggling for some time. Hopefully, this bankruptcy protection will help it get its house in order. This is similar to what Spirit is looking for with its recent filing. We’ll see how both carriers fare in 2025.
(Featured Image Credit: Silver Airways.)
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2 comments
They owe a lot of money to HSV, GSO, BNA… all of which they left with only a couple days notice. I know in HSV it’s in excess of $500,000. They also owe ground handlers in all of the above.
I reviewed Silver’s Ch. 11 filings in the southern district of FL on PACER. Long and short of it is their debt from loans/bonds is several times their annual gross income alone. That’s before you get to what they owe the IRS, aircraft lessors (they don’t own any of their planes) various airport authorities, vendors, etc. And Silver has very little in the way of assets. Lots of entities are going to really take it on the chin in this bankruptcy.
Once bankruptcy is done, I’ll be very curious to see if Silver is able to continue operating. Will any aircraft lessors want to take another risk with them? Will any funding source be willing to capitalize Silver 2.0? If so, will Silver continue with ATR’s after having accused ATR of not providing the level of support that they warranted to Silver? Lots of questions, and it really looks like it will be an uphill battle.