Charter Jet Company, Victory Jet LLC, Files Chapter 7 Bankruptcy
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Charter Jet Company Files for Chapter 7 Bankruptcy

November 15, 2011


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Victory Jet LLC, a young charter airline company headquartered in central North Carolina, recently filed for Chapter 7 bankruptcy protection. According to the Winston-Salem Journal, Victory Jet notified the bankruptcy court in its official filing that it has roughly $3.5 million in liabilities.

The company only holds assets worth about $8,000 in personal property. Sources indicate that Victory Jet, which had been based at Piedmont Triad International Airport in North Carolina, owes money to 54 different creditors, all of whom hold unsecured debts.

Because of the large amount of unsecured debts, the company opted to seek protection under Chapter 7 of the U.S. Bankruptcy Code. The airline company, which was only founded a few years ago, was created by former officials of Pace Airlines, which also met an untimely demise in September 2009.

The collapse of both Victory Jet and Pace Airlines within just a few years of each other shows that the country’s economic recession has had a huge effect on small airline companies, particularly those that offer high-priced chartered services for wealthy clients.

While major airlines can survive economic troubles, and even reorganize during bankruptcy proceedings, smaller airlines have less leverage in their struggles to maintain fiscal health.

In fact, Victory Jet never truly made it off the ground. The company shut down its operations before obtaining certification from the Federal Aviation Administration. It also failed to receive a certificate of public convenience and necessity from the U.S. Department of Transportation.

Despite these regulatory roadblocks, the company was able to lease 16,000 feet of space for cargo storage and offices. Due to its licensing struggles, Victory Jet owes its landlord tens of thousands of dollars in unpaid rent.

Even though it was unable to receive specialized certificates, Victory Jet did have a brief run as a carrier of professional and collegiate sports teams, as well as VIP groups.

Sources indicate that the company provided services for sports teams such as the Chicago Blackhawks, Boston Celtics, Arizona Diamondbacks, the University of Connecticut, and Notre Dame University.

Apparently, the company used a single plane for its operations. Victory Jet purchased the plane, a Boeing 737-000 from Swift Air, an airline based in Phoenix, and had converted it from a 141-seat passenger jet to a luxurious plane with 64 first-class seats.

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