Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Contractor Global Aviation Files for Bankruptcy Amidst Military Cuts

Bankruptcy News  February 16, 2012

Global Aviation Holdings Inc., which provides more chartered flights for the U.S. military than any other company, has filed for Chapter 11 bankruptcy protection, according to a recent report from the Reuters news service.

In its bankruptcy filing, Global Aviation listed a number of different reasons for its decision to seek debt relief through bankruptcy. These reasons included the U.S. pullout from Iraq, cuts in defense spending by the federal government, and high debt and labor costs.

Global Aviation, which is the parent company of North American Airlines Inc. and World Airways Inc., filed in a U.S. Bankruptcy Court in Brooklyn, New York, just two weeks after the Defense Department announced that it plans to reduce military spending by $487 billion over the next ten years.

February 16, 2012 - Posted by | Civilian Contractors | , , ,

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