US's Western Global Airlines mulls bankruptcy - report

After enjoying red-hot pandemic cargo demand, Western Global Airlines (KD, Fort Myers Southwest Florida) is considering bankruptcy as cargo demand comes off the boil. Citing unnamed sources, Bloomberg is reporting that talks are again underway with creditors about the airline’s financing needs, and while no final decision has been made, voluntarily filing for bankruptcy is a live option.

Headquartered in Florida, the Part 121-certified Western Global says it provides contracted air cargo transportation services, including ACMI services, to customers worldwide. The carrier says its customers operate across the e-commerce, NGO, government, logistics, express freight, and freight forwarding sectors.

The airline was founded in 2013 by James K. (Jim) Neff and Sunny Neff. It remains privately owned, with employees holding a 37.5% stake via an employee stock ownership plan. On June 20, Moody’s Investors Service withdrew Western Global Airlines’ Caa1 corporate family rating and Caa2 senior unsecured rating, saying it had “insufficient or otherwise inadequate information to support the maintenance of the ratings.”

In May, ch-aviation reported that Western Global was in talks with creditors “amid a cash crunch” caused by weakening cargo demand. The airline is also reportedly having problems with pilot shortages. The discussions canvassed ways to raise capital, including the possibility of selling engines. This disclosure followed the news that Western Global had axed an order for two B777-Fs. ch-aviation has contacted Western Global Airlines for comment following the latest bankruptcy speculation.

According to ch-aviation fleets advanced data, Western Global operates a fleet of 20 aircraft, including MD-11(F)s, two B747-400(BCF)s, one B747-400(BDSF), and B747-400FSCD. The carrier says they offer customers a turn-key cargo solution at a lower cost and more flexibility than doing so themselves.

Article source:

Leave a Reply