Selling Arrow, Again

Selling Arrow, Again

Copyright 2004, Traffic World, Inc.

Financially troubled Arrow Air has a new lender to bring it out of bankruptcy. The Miami-based all-cargo carrier has now been sold twice this year to different investment groups. The latest one is led by former Arrow Air president and CEO Guillermo "Willy" Cabeza.

Based in New York and called Arrow Air II, Inc., the company will assume Arrow Air''s debt and financing. Arrow Air II bought the loan and security agreement from Arrow Air Acquisition, the airline''s first buyer this year. Arrow Air has the backing of several unnamed investment groups.

"We are pleased with this development as it represents additional investment, financing and stability to ensure a successful reorganization for the benefit of our customers, creditors, employees, vendors and the community at large," Arrow Air President and CEO Frank Visconti said in a prepared statement. Arrow filed for Chapter 11 bankruptcy protection on Jan. 28 in Miami, hinting at the time it had a buyer lined up.

Cabeza was Arrow''s president and CEO from 1998 to 2001 and had worked for the airline from 1992 until he stepped down as its head. His group bought the airline from Arrow Air Acquisition, which is headed by Tony Romeo, a Miami aviation executive.

"We are very excited about our investment in Arrow Air and feel that the air cargo industry has tremendous potential," Cabeza said in a statement.

Since entering bankruptcy, the airline has gone from 750 employees to 580 employees.