World Airways ceases operations

One of the most established players in the US passenger and cargo air transport sector, World Airways, has ceased operations after it was unable to secure funding for restructuring.


World Airways ceases operations


One of the most established players in the US passenger and cargo air transport sector, World Airways, has ceased operations after it was unable to secure funding for restructuring. Operating a fleet of MD11 and B747 aircraft, its main customer was the US Air Force. In the fourth quarter last year, World Airways, its parent company Global Aviation Holdings and several of its fellow subsidiaries, filed for Chapter 11 bankruptcy protection.

Efforts over the past few months to secure funding to finance restructuring had failed, the carrier said. Last week, one of its main creditors declared the company to have defaulted on a loan. World Airways has laid-off 325 employees, including 109 pilots, but sister company North American Airlines will continue operations with plans to emerge from bankruptcy in the near future, the group said.