Monday, April 24, 2017

GLO grounded; Shreveport flights to end

Corporate Flight Management, Inc. (CFM) response: 

"FlyGlo’s statements about CFM are nothing more than a calculated distraction from their own bankruptcy filing. Their comments are entirely inconsistent with the motion filed in court today to compel our continued service. The court documents make clear that CFM is only one of many creditors to which FlyGlo is indebted. We have attempted to resolve the dispute with FlyGlo for some time and continue to welcome any satisfactory resolution."

GLO Airlines will stop operations – including its two daily flights from Shreveport to New Orleans – after filing for bankruptcy, a Shreveport Regional Airport spokesman said.

The company announced its bankruptcy filing in a press release but did not address the end of flight operations. It described the bankruptcy as a way to reorganize and thus "to better provide its strong and rapidly growing customer base with high-quality service."

But Mark Crawford, marketing and public relations manager for Shreveport Airport Authority, said that GLO will end all flights after Thursday.

Crawford said the flights are to be halted under to a court order issued following GLO filed its petition in court seeking bankruptcy protection. The Advocate reported that a bankruptcy court judge rejected GLO's request to continue operating after Thursday.

"From what we've been told, they plan to resume flight hopefully by the end of next week," Crawford said.

In a news release, GLO blamed its difficulties on a dispute with the company, Corporate Flight Management, it had hired to operate airplanes under the GLO name.

GLO alleged that Corporate Flight Management had "failed on its contractual obligations to deliver quality performance and solid management of GLO’s program to provide air service to chosen markets." GLO said it raised concerns with Corporate Flight Management about "performance and business practices," but did not specify what prompted its concerns.

Corporate Flight Management responded by unilaterally ending its contract with GLO, according to the release. GLO said it then had no choice but to seek bankruptcy protection to continue operations.

CFM countered that GLO's statements about performance were intended as "a calculated distraction" from the bankruptcy filing.

"The court documents make clear that CFM is only one of many creditors to which FlyGlo is indebted," Corporate Flight Management said in a statement, using GLO airline's legal name. "We have attempted to resolve the dispute with FlyGlo for some time and continue to welcome any satisfactory resolution."

Trey Fayard, GLO's founder and CEO, said in a statement that filing for bankruptcy was a difficult but necessary decision.

"We look forward to promptly and successfully emerging from reorganization in the near future,” he said.

GLO operates two flights per day Monday through Friday and one flight on Saturday and Sunday. Crawford said between 1,000 and 1,200 people fly GLO in a month. The New Orleans-based company began flying about 18 months ago.

Original article can be found here:

HUNTSVILLE, Ala. – GLO Airlines hasn’t celebrated its first anniversary in Huntsville yet, but the company is already facing financial issues. 

Our news partners at report GLO is seeking bankruptcy protection. We checked this morning about changes to the schedule on the flight to New Orleans, and you can’t select flights out of Huntsville International Airport after Wednesday, April 26.

We expect to hear more from GLO Airlines today about the future of its flight schedule.

The company says its direct air carrier/aircraft operator has “failed on its contractual obligations to deliver quality performance and solid management of GLO’s program to provide air service to chosen markets.”

The company says rather than finding solutions, the air carrier terminated its contract to operate GLO’s program and fly passengers.  It added this move put GLO’s operations and finances at risk.  GLO Airlines provides nonstop flights between regional markets in the Gulf South.

The first GLO Airlines flight from Huntsville took off on September 30, 2016.  It was sold out.

Do you have a flight booked with GLO Airlines out of Huntsville in the near future? WHNT News 19 has contacted the airline for answers to help you.

Original article can be found here:

New Orleans-based GLO Airlines, which has operated regional charter flights from Louis Armstrong International Airport since late 2015, has filed for bankruptcy protection and must stop operating after Thursday, federal bankruptcy court records show.

GLO has asked the court to allow it to keep flying past Thursday, saying that otherwise it will lose "its principal source of revenue."

Looking to attract business travelers and others eager for an alternative to driving or multiple-stop flights, GLO has offered nonstop service from New Orleans to Shreveport; Little Rock, Arkansas; Memphis, Tennessee; and Huntsville, Alabama.

On Sunday, FlyGLO LLC filed a voluntary petition for bankruptcy in federal court in New Orleans, listing assets and liabilities of between $10 million and $50 million, with up to 49 creditors.

According to court papers, GLO's largest unsecured creditor is GE Engine Services, of Ohio, which is owed nearly $980,000.

GLO leases three 30-passenger Saab 340B aircraft, which are operated by a third-party company, Corporate Flight Management Inc.

According to court papers, Corporate Flight Management notified GLO this month that the airline had breached its contract because it fell behind on payments dating back to March.

As a result, Corporate Flight Management notified GLO and the Department of Transportation that the contract was terminated, with a 10-day window for taking effect. 

GLO disputes that it was in default on its contract. 

The company moved more than 32,300 passengers through the New Orleans airport in 2016 and was on track to serve about 40,000 in 2017, according to its federal court filings, which claim the service is "essential to bringing visitors and business people in and out of New Orleans and the Gulf South."

In a statement Monday, Jordan Mitchell, a GLO spokesman, blamed the reorganization on the airline's dispute with Corporate Flight Management. He said GLO was working toward "a solution that will get us back flying a full schedule."

"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," 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 founder and CEO Trey Fayard did not return a message Monday. In the statement, he called the bankruptcy filing "a difficult decision, but a necessary one to protect everyone involved."

GLO "directly and indirectly" supports 79 jobs and has a payroll of more than $2.8 million, records show.

When the service was announced in 2015, many local officials hailed the startup as one that would improve connections throughout the Gulf Coast and in turn boost New Orleans' standing in the business community.

Original article can be found here:

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