Silver Airways bankruptcy keeps getting worse

The low-cost holiday airline filed for bankruptcy at the end of 2024.

Apr 14, 2025 - 14:08

Silver Airways bankruptcy keeps getting worse

Two days before the start of 2025, low-cost carrier Silver Airways announced that it was filing for Chapter 11 protection at the U.S. Bankruptcy Court for the Southern District of Florida.

The Hollywood, Florida-based carrier launched in 1988 and had been flying vacationers to popular holiday destinations such as Orlando and Tampa in Florida and Nassau, St. Kitts, and San Juan in the Caribbean.

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Bankruptcy trustee seeks to have case dismissed over 'substantial and continuous loss'

Once the bankruptcy was announced, Silver lost the right to fly into the British territory of Anguilla and had to suddenly pull all of its flights out of Orlando International Airport (MCO) — in both cases, over rapidly accumulating debts and unpaid airport fees.

"To date, Silver’s restructuring has been going exceedingly well, but unfortunately, Dutch aircraft leasing company TrueNoord abruptly reversed its previously stated position and immediately required Silver to pay millions of dollars to retain the airplanes we have been flying for years," an airline representative told TheStreet in March 2025.

As Silver waits to have its restructuring plan heard by a judge, the bankruptcy trustee assigned to oversee the case by the government is asking the court to throw it out and go straight to liquidation over what he classifies as "substantial and continuous loss" and "fanciful projections" about a way to recover that "fail to take reality into consideration."

On May 7, Southern District of Florida Judge Peter Russin will also hear motions from four creditors who are requesting immediate payment over debts owed. These include Florida's City of Tallahassee and Monroe County, as well as the Hillsborough County Aviation Authority and StandardAero Atlantic aircraft repair and parts leasing company.

Silver Airways launched out of Hollywood, Florida in 1988.
Image source: Shutterstock

Here is how much and to whom Silver Airways owes money

Silver racked up more than $500 million in total debt, while the revoked right to fly into Anguilla's Clayton J. Lloyd International Airport (AXA) in January came after non-payment of nearly $104,000 in airport fees.

Tallahassee International Airport (TLH) and Tampa International Airport (TPA) claim a reported $84,000 and $385,000 in unpaid debts. StandardAero is asking Judge Russin to require Silver to immediately return a plane engine it has been leasing from them to make up for money owed.

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Silver, meanwhile, has continued to push to allow for a restructuring and promises that it will be able to get on a better financial path if given a chance to secure new leasing arrangements and funding.

"We anticipate completing this process by the first quarter of 2025, emerging stronger and ready to continue serving you with the same dedication we've upheld for over 13 years," the airline said in a statement in December 2024.

The first quarter of 2025 has now passed and no public announcement of a restructuring proposal has been made.

A separate complaint filed by the City of Tallahassee last February cited the "magnitude of the passenger facility charges collected on behalf of the airport individually and of airports as a whole," as well as the risk of disputes "should there occur a default" as the reason for a judge to require that Silver pay any fees it charges passengers directly to their airport.