There’s been tons of articles about American Airlines’ bankruptcy, but somehow I missed that Global Aviation Holdings, the parent company of World Airways and North American Airlines, declared Chapter 11 Bankruptcy on Sunday.
If you’re an old-school airline nerd, you’ll remember an earlier incarnation of World Airways, which flew both charters and scheduled service — charters to ferry soldiers to the Vietnam War, and then ill-fated scheduled service out of Oakland. North American Airlines also previously flew scheduled service, with an odd mix of destinations out of JFK, including flights to Guyana and Nigeria.
Most recently, though, the two airlines have relied on military contracts, bringing soliders back and forth to Iraq and Afghanistan. While we’d all like to see these wars end, they were financially beneficial for these two airlines. With the troop reductions in those areas, they also saw concurrent reductions in military charters.
Given that, Chapter 11 was their only recourse.
(One could argue that perhaps they had too many eggs in the military charter basket, and what sort of surprise was it that military operations in Iraq ended, as Obama has been talking about it for 3 years…but that’s neither here nor there.) The two airlines plan to continue flying charter flights.