Ryan International Airlines, an airlift provider for the U.S. military, filed for Chapter 11 bankruptcy on Tuesday.
The airline cited decreased government spending and the purchase of two aircraft purchases it can't fully operate for the collapse of the business.
Ryan Airlines used to provide tourist flights travel to the Caribbean, but as margins decreased it turned to military operations. The "unexpected and dramatic reductions in military flying" in 2012 was a blow for Ryan Airlines. It a filing with the bankruptcy court, it said: "The reality of rent payments, high payroll and benefits coupled with low utilization and decrease in the reimbursement paid by the military on a per seat/per mile basis have led to a precarious cash flow crisis.”
Ryan Airlines claimed $48.6 million in assets and $79.2 million in liabilities in its bankruptcy petition and said it has annual revenues of more than $244 million. It is asking for court approval of $4.5 million in bankruptcy financing from Intrust Bank to allow the airline to continue operations during its case.
Ryan International Airline files for Chapter 11
