Arrow Air grounded

ARROW Air has ceased operations, effective immediately.

In a statement, the company said: “Like many companies in our industry, Arrow Air has experienced significant operating losses as a result of increasing operating costs and declining revenues.

“The decision to wind down the company’s schedule service operations was a difficult one. This decision was not made lightly, and was a last resort after the company exhaustively searched for other options, including financing or a sale of the business.”

Arrow spokeswoman, Andi Salas, refused to speculate about what could happen to its assets.

During the first quarter, the company posted an operating loss of US$4.4 million on operating revenue of $61.5 million, a slight improvement from its $4.8 million loss on $45 million in revenue in the same quarter last year.

The only time the company posted a profit was in 2004 for $470,000.