Aha! is no more.
The parent of the Reno-based ultra-low-cost carrier, ExpressJet Airlines, announced Tuesday it was filing for Chapter 11 bankruptcy and was ceasing all flight operations, effective immediately.
Atlanta-based ExpressJet cited three reasons for the bankruptcy filing: growth challenges stemming from aircraft availability and airport infrastructure, revenue impacts from COVID-19 and the inability to bundle hotels, and high fuel prices.
“A combination of conditions led us to this decision,” ExpressJet CEO Subodh Karnik said in a statement. “Despite the valiant efforts of our employees to overcome challenges, and despite great support by our cities and airports – especially Reno-Tahoe and the community there, we arrived at a point where termination of operations was in the best interest of our stakeholders.”
Aha! flew to 11 cities from its hub at Reno-Tahoe International Airport (RNO), including to Fresno-Yosemite International Airport.
It’s somewhat unusual for an airline to file for Chapter 11 bankruptcy and immediately shut down, as Chapter 11 permits a company to undergo a court-supervised restructuring. Aha!’s announcement speaks of liquidation of assets, which is what a different type of bankruptcy, Chapter 7, facilitates.
Get the full story: Read more.
