nation, it seems the menace of bankruptcy has set sights on the skies which have not been spared in its fell swoop. The latest to bite the bankruptcy dust is Sky King, which has gone in for Chapter 11 bankruptcy filing. This is a company that was founded by the co owner of the Sacramento Kinds Gregg Lukenbill. The company has as many as 308 creditors and around $10 million to $50 million in assets and liabilities. The company has 130 employees and nine Boeing 737 aircraft. Incidentally, Sky King had just 5 planes and 80 employees in 2005 when the economic condition was much better.
The problem is that lack of demand has seen Sky King’s revenues falling by half from $25 million to just around $12 million. The company had started ferrying various sport teams before starting to carry other passengers as well. The airline operates 22 flights every day from various airports across the country. The IRS is owed around $3.2 million by the airline and it was a threat to appoint a receiver that has sent the airline scurrying for cover.