Arrow Air

Arrow Air was an American airline that operated both passenger and cargo services from its principal base at Miami International Airport. The company was relaunched in 1981 by aviation entrepreneur George E. Batchelor as a charter carrier and was intended as a new business connected with Batchelor's earlier Arrow Airways venture, which had operated from California after the Second World War. The two companies were separate corporations and held separate operating certificates. Arrow initially concentrated on charter flying but added scheduled passenger service in 1982. During the 1980s it developed a broad international network, including routes linking the United States and Canada with the Caribbean, Mexico, Europe and Latin America. Puerto Rico became particularly important: San Juan served as a central point for services to destinations such as Miami, New York, Boston, Philadelphia, Montreal, Toronto and other cities. The airline used Douglas DC-8 and McDonnell Douglas DC-10 aircraft, and at various times also operated Boeing 727 and Lockheed L-1011 aircraft. It combined scheduled passenger flights, charter operations, wet-lease flying and freight services rather than relying on one narrowly defined business model. Military charter work became another part of the business. Arrow was approved to perform military charters in 1984 and received a United States Department of Defense contract in 1985. On December 12, 1985, an Arrow DC-8 operating a military charter crashed shortly after takeoff from Gander, Newfoundland. The flight was carrying soldiers of the United States Army's 101st Airborne Division from Cairo to Fort Campbell, Kentucky, with an intermediate refueling stop in Gander. All 248 soldiers and eight Arrow crew members died. The disaster brought extensive scrutiny and severe reputational and financial pressure. Arrow sought Chapter 11 protection in February 1986 but continued operating. The airline later rebuilt its activities through wet leases, cargo contracts and military transportation. It leased aircraft and crews to other carriers, including LOT Polish Airlines and Air Marshall Islands, and again carried United States troops during the military buildup before the Gulf War. In 1995, however, the Federal Aviation Administration grounded Arrow over maintenance-record documentation. The interruption caused substantial operational disruption, employee layoffs and financial losses, although cargo operations resumed later that year. Arrow continued to experience financial instability during the 1990s. It reported losses despite growth in Latin American cargo and charter markets, and its fleet and business mix changed repeatedly. Fine Air Services acquired Arrow in 1999, combining Arrow's operations with Fine's cargo business and refrigerated distribution infrastructure. Fine Air subsequently entered bankruptcy, and the businesses were reorganized under Arrow Air-related ownership. Arrow acquired Air Global International in 2002 and emerged from another Chapter 11 restructuring in 2004. The company entered a strategic alliance with MatlinPatterson Global Opportunities in 2008, but the business remained under pressure from debt, fuel costs, changing cargo-market conditions and difficulties in securing a buyer. Arrow Cargo ceased scheduled operations in June 2010. Arrow Air stopped operating on June 29, 2010, filed for Chapter 11 bankruptcy protection on July 1, and was ultimately liquidated.

Arrow Air's corporate story was rooted in the aviation activities of George E. Batchelor. Batchelor, a former Air Transport Command pilot, had founded Arrow Airways in California in 1946. That earlier irregular carrier attempted transcontinental scheduled service during the tightly regulated Civil Aeronautics Board era and lost its operating certificate in 1951 after regulators determined that it had operated unauthorized scheduled routes. Arrow Air, founded in Miami in 1981, was a separate company, although Batchelor regarded it as a continuation of his earlier aviation ambitions. The new Arrow began as a charter airline under Batchelor Enterprises and added scheduled passenger flights in 1982. Its early network included transatlantic and Caribbean routes, while its later strategy centered increasingly on north-south traffic through San Juan. By the middle of the 1980s, Arrow served a mixture of scheduled and unscheduled markets and carried more than one million passengers in 1985. Its aircraft included DC-8s and DC-10s, and its business also incorporated military charters and aircraft-leasing arrangements. The December 1985 Gander crash was the defining tragedy of Arrow's history. The accident killed 248 American soldiers and eight crew members and generated intense government and public scrutiny. Arrow filed for Chapter 11 reorganization in February 1986, reduced staffing and continued flying. During the following years, management attempted to diversify through wet leases, cargo and military work. The airline leased aircraft to other operators and participated in troop transport connected with the 1991 Gulf War buildup. Arrow's financial and regulatory problems continued. Competition from larger passenger airlines affected Latin American cargo rates, and the company recorded losses in 1992 and 1993. The FAA grounded Arrow in March 1995 over maintenance-record documentation. The carrier used substitute operators during the shutdown, dismissed a substantial portion of its workforce and incurred losses and regulatory penalties. Cargo flying resumed in June, and Arrow subsequently became a major international freight operator at Miami International Airport. During the late 1990s, Arrow altered its fleet and business mix. It removed Boeing 727s, leased Lockheed L-1011s and increasingly performed charter flying for other airlines. Fine Air Services acquired the airline in 1999 for a reported $115 million. Fine's refrigerated cargo infrastructure was strategically useful because perishables represented a significant share of Latin American freight. However, Fine's existing financial problems, debt, fuel costs and weak market conditions led to bankruptcy in 2000. The businesses were later reorganized, with Arrow emerging from Chapter 11 in 2002 under Arrow Air Holdings Corp. Arrow expanded and reorganized again in the early 2000s. It acquired Air Global International in 2002, sought new Central and South American routes and continued to combine scheduled cargo with charters and partnerships. Another Chapter 11 filing occurred in January 2004, followed by court-approved restructuring and emergence in June of that year. In 2008, Arrow announced a strategic alliance with MatlinPatterson Global Opportunities, but the alliance did not restore long-term viability. Scheduled cargo operations ended in June 2010, and the company was liquidated after no buyer was found.

• 2010

  Operations end

  [1]Arrow Airen.wikipedia.org

  Arrow ceased operations in June and was subsequently liquidated.

• 2004

  Emergence from restructuring

  [1]Arrow Airen.wikipedia.org

  Arrow exited Chapter 11 after a restructuring approved by the bankruptcy court.

• 2002

  Air Global International acquisition

  [1]Arrow Airen.wikipedia.org

  Arrow acquired Air Global International as part of an effort to expand cargo coverage.

• 1999

  Acquisition by Fine Air Services

  [1]Arrow Airen.wikipedia.org

  Fine Air acquired Arrow and combined it with its Latin American cargo network and logistics facilities.

• 1995

  FAA grounding

  [1]Arrow Airen.wikipedia.org

  The FAA grounded Arrow over maintenance-record documentation, with cargo operations later allowed to resume.

• 1986

  First Arrow Air Chapter 11 filing

  [1]Arrow Airen.wikipedia.org

  The company filed for reorganization after the Gander accident while maintaining operations.

• 1985

  Military charter contract and Gander crash

  [1]Arrow Airen.wikipedia.org

  Arrow received a Department of Defense contract and suffered the fatal Gander DC-8 disaster later that year.

• 1982

  Scheduled passenger service begins

  [1]Arrow Airen.wikipedia.org

  Arrow added scheduled passenger operations, initially linking California with Montego Bay.

• 1981

  Arrow Air is relaunched in Miami

  [1]Arrow Airen.wikipedia.org

  George E. Batchelor established Arrow Air as a new charter airline under Batchelor Enterprises.

A flexible international carrier combining passenger charters, scheduled passenger flights, Latin American cargo operations, military charters and wet-lease services.

• Passenger airline service · 1982

  Scheduled passenger services

  Arrow operated scheduled domestic and international passenger flights at different points in its history. Its network included services from the United States and Canada to Puerto Rico, Mexico, the Caribbean and selected European destinations. San Juan became a major connecting base during the airline's 1980s passenger expansion.

• Air cargo

  Arrow Cargo

  Arrow Cargo was the airline's freight operation, with Miami as its principal hub and a strong focus on Latin American and Caribbean markets. It carried scheduled freight, including perishables, and served destinations across the United States, Canada, Central America, South America and the Caribbean.

• Charter aviation · 1981

  Charter and military airlift

  Charter flying was central to Arrow's identity, covering commercial charters for other airlines and military transportation. The carrier was approved for military charter work in 1984 and later transported United States personnel during the buildup to the Gulf War.

• Aircraft leasing and ACMI · 1987

  Wet-lease operations

  Arrow supplied aircraft and operating crews to other carriers. Examples included leasing a DC-8 to LOT Polish Airlines and providing a combi-configured DC-8 to Air Marshall Islands for Pacific services.

• 1995

  FAA grounding over maintenance records

  The FAA suspended Arrow's operations after alleging that maintenance documentation was improperly maintained. Arrow disputed the characterization and attributed the issue to a disagreement involving electronically stored records, but the grounding caused layoffs, substitute flying and significant losses.

  Source

• 1985

  Gander military-charter crash

  An Arrow Air DC-8 crashed shortly after takeoff from Gander, Newfoundland, killing 248 United States soldiers and eight crew members. The accident led to extensive scrutiny of the airline and contributed to its subsequent financial crisis.

  Source

Read more

• 2008

  Strategic alliance with MatlinPattersonStrategy

  Background

  Arrow remained financially vulnerable despite its cargo network and charter activities.

  Action taken

  The airline announced a strategic alliance with MatlinPatterson Global Opportunities.

  Aftermath

  The alliance did not prevent the end of scheduled operations and liquidation in 2010.

  Source

• 2002

  Acquisition of Air Global InternationalM&A

  Background

  Arrow sought to broaden its cargo presence and develop complementary Central and South American operations.

  Action taken

  Arrow acquired Air Global International and incorporated its cargo capabilities into the wider business.

  Aftermath

  The airline continued restructuring and later exited Chapter 11 in 2004.

  Source

• 1999

  Fine Air acquisitionM&A

  Background

  Arrow was experiencing financial pressure but retained valuable cargo routes and Latin American operating capabilities.

  Action taken

  Fine Air Services acquired Arrow from International Air Leases and kept the Arrow brand in service.

  Aftermath

  The combined business later entered bankruptcy amid debt, fuel-cost pressure and weak cargo-market conditions.

  Reported acquisition price. 115 million USD (1999)

  Source

• 1984

  Shift toward a north-south networkStrategy

  Background

  Low fares and losses made the airline's earlier east-west route structure difficult to sustain.

  Action taken

  Arrow canceled several routes and made San Juan the center of a network linking North America, the Caribbean and Latin America.

  Aftermath

  The revised network supported substantial passenger and charter activity during the mid-1980s.

  Source

1. 1Arrow Airen.wikipedia.org