DES MOINES, Iowa — AccessAir has shut down, just two weeks before it was to present a reorganization plan to keep the regional airline flying.
"I am deeply disappointed that our vision for affordable air service for central Iowa will not be realized," said John Ruan III, AccessAir's principal backer, Tuesday.
"I was unable to obtain the necessary level of capital support for the airline. That, coupled with low passenger loads, made it impossible to overcome the financial burden of maintaining a community-based airline," Ruan said.
AccessAir employees filed into the airline's counter space at Des Moines International Airport about 5:30 p.m. Tuesday and began removing computers, office supplies and equipment belonging to the airline. All equipment was moved out within 30 minutes.
"The decision stems from the decision of the Ruans to withdraw their support," said Michael J. Pankow, an attorney for the airline in Denver late Tuesday. "The decision, as far as I know, happened today."
Pankow said scheduled flights were scheduled to stop Tuesday night.
Ruan said AccessAir, which previously withdrew its reorganization plan filed under Chapter 11 in the U.S. Bankruptcy Court, apparently will proceed to a Chapter 7 liquidation.
The airline cited unanticipated administrative constraints and financial burdens stemming from the former AccessAir and the subsequent lack of funding from public and private sectors as contributing factors in the decision to shut down.
The airline said poor weather and a slowing economy contributed to inadequate resources to meet expenses.