Faced with having to attract passengers to its airline once it resumes service, coupled with possible lawsuits, it has been alleged that Chalk’s Ocean Airways has filed for bankruptcy following the recent crash of flight 101 on Dec. 19.
The Guardian was reliably informed by an aviation source, that in addition to its fleet being grounded, the airline, which has reportedly been plagued with financial and maintenance problems before the crash, has filed for bankruptcy. But the General Manager of Chalk’s Ocean Airways at Paradise Island, Clint Williams, denied such reports on Tuesday.
“No mam, that is not true. I have not heard about that [Bankruptcy claims]. I don’t know anything about that, and as far as I know, we are going to resume services soon but when, I don’t know” he said.
Up to press time on Tuesday, several calls placed to the General Manager of Chalk’s in Ft. Lauderdale, Mr Roger Nair, were not returned and his secretary said he was in a meeting. However, The Associated Press reported shortly following the Dec. 19 crash, that Chalk’s had lost hundreds of thousands of dollars in recent years and data from the Federal Bureau of Transportation statistics reveals that in 2002, Chalks had net losses of $244,000 on operating revenues over five million dollars.
The current owner of Chalk’s, Mr Jim Confalone, bought Chalk’s after it was reportedly forced into involuntary bankruptcy in 1999 under previous management, when creditors sued the airline according to AP.
If the airline has not filed for bankruptcy, it is still not known when the four remaining fleets which comprise Chalk’s airlines, would resume service. Mr Williams told The Guardian shortly before the New Year, that the company was hoping to resume operations sometime this week, but The Guardian has also received reports that service may not resume until Jan. 10.
It was also reported on CBS Cable channel nine on Tuesday, that Kenrick Sherman, the husband of Sophia Sherman and father of infant Bethany Sherman who both died in the said crash, has plans to reportedly launch a class action lawsuit against Chalk’s airlines. Mr Sherman could not be reached for comment on Tuesday, but such a move may come as a surprise to the company, as Mr Williams told The Guardian in a previous interview that the Chalk’s is not anticipating any lawsuits from family members because the crash was an accident.
“I don’t see the reason for a lawsuit really, an accident is an accident. Any airline can have an accident. So I really don’t see the logic at this particular time for a lawsuit, unless something happened that the company did not measure up to,” Mr Williams said at the time.
Chalk’s grounded its entire fleet almost two weeks ago, after investigators discovered a crack in the main support beam of the wing which fell off the airline when it crashed off Miami Beach on Monday Dec. 19. The fleet is presently being inspected by the Federal Aviation Authority (FAA) and the National Transportation Safety Board (NTSB), but The Guardian was told that the inspection process could take months.
Chief Councilor of Bimini, Tasha Bullard-Rolle, admitted to The Guardian on Tuesday that many residents were fearful about flying with Chalk’s following the crash before its fleet was grounded. On the other hand, Mr Williams, on more than one occasion, stressed that there was “no doubt” that the company would retain its customers.
“We have an overwhelming number of customers and people [who] are calling everyday to find out when we will start flying and they feel that there is no other way to go but Chalk’s,” Mr Williams said.
By: TAMARA McKENZIE, The Nassau Guardian
