New Orleans-based GLO Airlines has been ordered to ground flights after filing for bankruptcy protection.
The small jet regional operator, which flies 30-seater Saab aircraft, must stop operating from Thursday, according to federal bankruptcy court documents.
The company filed a voluntary petition for bankruptcy protection on Sunday.
GLO’s three aircraft are operated by Corporate Flight Management Inc. which claims GLO has breached its contract over nonpayment of fees dating back to March.
Corporate Flight Management then notified the Department of Transportation it would terminate the contract with GLO, effectively grounding all flight operations.
GLO disputes this reason.
"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 said the bankruptcy filing was ‘a difficult decision, but a necessary one to protect everyone involved.’
New Orleans based GLO began serving regional Southern markets in Arkansas, Tennessee and Alabama in late 2015.
