Regional airline Silver Airways has just filed for bankruptcy protection. While details about the company’s financial performance are largely private, I don’t think anyone who was has been following the airline will be surprised by this development.
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Silver Airways plans Chapter 11 restructuring
Silver Airways has announced that it’s filing for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Florida. As the airline describes it, this step is being taken to “ensure a sustainable future,” and to “secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline.”
Executives at the airline anticipate completing the 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.”
During the Chapter 11 reorganization process, all tickets will remain valid, and the airline will continue operating as usual. You can continue to book flights with Silver Airways through the carrier’s website, or any other third party channel. Furthermore, United and JetBlue customers will experience no disruptions to their bookings or services.
For those not familiar with Silver Airways, this is a regional airline based in Hollywood, Florida. The airline has a fleet of 14 turboprops, including eight ATR 42-600s and six ATR 72-600s. The carrier’s route network is heavily focused on Florida and the Caribbean. A couple of years ago, I reviewed the Silver Airways experience on a flight within Florida. 
Silver Airways is the second US airline to file for bankruptcy protection in recent months, with Spirit Airlines being in a similar situation.
My take on Silver Airways’ financial issues
Silver Airways isn’t a huge airline, and many may not even be familiar with it. Given that I live in Florida, I often see the carrier’s planes when flying through Tampa or Fort Lauderdale.
Within the US airline market, Silver Airways has a unique position. It’s exclusively a regional airline, and while it has some agreements with United and JetBlue, it’s not a regional subsidiary of those airlines. I’ve always found the carrier’s business model to be unusual, since it sure seems like they’re going after a very niche market, all while not having much name recognition.
Silver Airways isn’t publicly traded, but instead, is owned by venture capital firm Versa Capital Management, which purchased the airline in 2016. So a lot of the details of the company’s financials aren’t publicly known.
In early 2022, the company announced how it completed a recapitalization, including raising $50 million of new capital through the placement of senior secured convertible notes, to provide further support to the carrier’s business plan, including accelerating growth.
Interestingly, just a year later, the airline faced an eviction at Fort Lauderdale Airport (FLL), after the airline wasn’t paying its fees for using the airport, and accumulated over $1 million in charges. Nearly being evicted at your biggest hub airport isn’t a good sign. Those fees ended up getting paid after some time, but it sure makes you wonder what was going on…
I’m curious if Chapter 11 solves Silver Airways’ problems, or if more will be needed. Bankruptcy protection can help with addressing debt issues, though it sure seems to me like Silver Airways may also have profitability issues that can’t so easily be addressed in court.
Could Silver Airways somehow become an attractive acquisition target for another major regional carrier? It’s interesting, because all of the regional subsidiaries of the “big three” US carriers have retired turboprops, while that’s the entire Silver Airways fleet.
Bottom line
Florida-based Silver Airways has filed for Chapter 11 bankruptcy protection. The privately owned airline has clearly had some financial struggles, based on the fact that it was nearly evicted from its hub a couple of years back. Executives at the company claim that the airline will emerge from bankruptcy in the first quarter of 2025, though one wonders what exactly will change.
For the time being, it’ll be business as usual at Silver Airways, so passengers don’t have to worry.
What do you make of Silver Airways filing for Chapter 11 bankruptcy protection?
Ben, talking about tpa can we get a article why delta’s flying a330s to tpa from ATL.
And also why American flew a 777 from HNL-TPA a few days ago
Not just the second US airline, the second Florida airline.
Bottom line, it’s an awful airline. Flown it before but never again. Poor customer service, terrible management, which equals a company not making any money. Unless they change management, and the way they treat the few paying customers that they do have, they are doomed. And when I say awful, I can’t emphasize awful enough.
Curious. I know next to nothing about the airline. What's the root cause of their financial distress? It's hard to offer any meaningful comment without knowing what their problem has been. The traditional 3 C's of business...cost/customer/competition? (though I doubt competition is a factor given their niche network)
I haven't flown Silver, but Seaborne used to fly all over the USVI. Seems those routes are now served from small airports by Silver rather than flying boats. Looking at the company history, you can see the expansion in 2013 and excited commentary about flying on a Pan Am route.
Chapter 11 just delays the inevitable. Take a big breath and rip the band-aid off. It'll be better in the long run.
It would be bad if Silver does not survive as getting out of Key West to any place in Florida requires using Silver. Silver serves other Florida markets nicely by providing flights within the state. Florida does not have a built out train system. getting from west to east is by car only. A service like this is vital
As I look in my crystal ball, might be a good fit for Jet Blue, especially since B6 recently upgraded San Juan (SJU) to crew base status for FAs and pilots, and is Silver's second largest hub. In the Caribbean, a prop may be more efficient than a jet.
Also, FLL is the third largest for B6 and the largest for Silver. Also, Silver covers seven airports in the Bahamas from FLL. In a...
As I look in my crystal ball, might be a good fit for Jet Blue, especially since B6 recently upgraded San Juan (SJU) to crew base status for FAs and pilots, and is Silver's second largest hub. In the Caribbean, a prop may be more efficient than a jet.
Also, FLL is the third largest for B6 and the largest for Silver. Also, Silver covers seven airports in the Bahamas from FLL. In a stretch, could provide commuter service for BOS & New York freeing up jets for longer distances.
Now that Ms Joanna has cracked the whip at B6 and imposed financial and service standards, maybe she could do the same for Silver.
New name would be JBExpress!!
Why would the name change? They'd just get absorbed into Jetblue
American Eagle, Delta Connect, & United Express!!
Allows B6 to move up the airline food chain, better utilization of B6 jets, stepping stone for Silver pilots, etc.
The biggest hurdle is that they do have name recognition, and it's universally bad... there's no knowing when or if your flight will actually run, and you're on your own to figure out when or if that flight is running, and to resolve any issues in the meantime.
There isn't a place for this kind of independent airline in the US, particularly prop flying. These routes are usually covered through legacy regional flying (often with first class) or in some cases mainline (Caribbean from Miami).