Bankruptcy filings by airlines have begun to spread to the ancillary sectors of the industry, forcing major service providers to reorganize their businesses, restructure debt, and in some cases, sell their businesses.

When airlines file for bankruptcy, they affect not only the lives of employees and customers but also the viability of related businesses.

One business affected by airline bankruptcies is Avenger Flight Group LLC, which has filed for bankruptcy protection, despite a high demand for new pilot training.

Avenger Flight Group files for bankruptcy protection to reorganize and sell its assets.

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Avenger Flight Group files for bankruptcy

Global leader in commercial aviation flight training Avenger Flight Group LLC filed for Chapter 11 bankruptcy protection, facing a high debt load, general industry headwinds, and bankruptcies of some of its major customers.

The Fort Lauderdale, Fla.-based airline pilot training company and 20 affiliates filed their petition on Feb. 12 in the U.S. Bankruptcy Court for the District of Delaware, listing $100 million to $500 million in assets and liabilities that include more than $273 million owed on its prepetition secured term loan facility.

Avenger will seek to sell its assets to its prepetition secured lender, acting as a stalking-horse bidder, in a Section 363 bankruptcy auction for a credit bid of $125 million, according to the bidding procedures.

Avenger seeks sale of its assets

“I believe that the bid procedures provide an appropriate framework for the debtors and their advisors to review, analyze, and compare bids for the assets and to engage with bidders on an arm’s length basis to work to improve the quality of their bids for the benefit of all parties of interest,” Avenger Chief Restructuring Officer Lawrence Perkins said in a bankruptcy declaration, Verita reported.

Qualified bidders, except the stalking horse, must submit a good-faith deposit of $12.5 million, or 10% of the stalking horse bid, to participate in the auction.

The prepetition lender has also agreed to provide up to $14.5 million in debtor-in-possession financing to finance the bankruptcy case and sale process, and roll up $29 million in prepetition debt, court papers said.

The debtor’s largest unsecured creditors include Allegiant Air LLC, owed over $7.7 million; Spirit Airlines Inc., owed over $4.5 million; Pedro Sors, owed over $2.5 million on an unsecured note; and landlord Prologis, owed over $990,000 in unpaid rent, according to the petition.

Avenger, founded in 2012, operates 11 training centers in four countries, which include 50 full-flight simulators. The company owns 23 simulators, leases 12, houses and maintains 11, and has servicing agreements on four others.

The company also operates 15 flight training devices, of which six are owned by Avenger, and nine are serviced by the company.

Airline pilot training facilities should be in high demand because of a shortage of pilots, which Boeing recently revealed, according to Acron Aviation Academy’s website.

Boeing sees huge demand for pilots

Boeing estimates that 660,000 new pilots will be needed globally over the next 20 years, according to its Pilot and Technician Outlook.

“Never before has the aviation industry encountered such a transformational shift when it comes to the demand for new pilots and the shrinking supply of qualified pilots,” David Cox, director of Sanford, Fla.-based Acron Aviation Academy, said on its website.

“Due to mandatory retirements, an upturn in travel demand, and expanding commercial airlines, the pilot shortage is redefining what it means to be a part of the industry,” Cox said.

Avenger, which employs 97 workers, operates U.S. facilities in Fort Lauderdale and Orlando, Fla.; Las Vegas; Fort Worth and Irving, Texas; and Minneapolis.

International facilities include Mexico City and Monterrey, Mexico; Madrid; Frankfurt; and Medellin, Colombia.

The company closed its Rome facility in 2022 and its Cancun facility in 2024. It also sold its Warsaw and Tel Aviv centers in 2025.

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From its formation, the company sought to capitalize on an underserved niche, providing outsourced aviation simulation to commercial airlines, according to court papers.

Since opening for business, Avenger established business relationships with Spirit, Allegiant, Avelo, Sun Country, Viva Aerobus, Wizz Air, Iberia Express, and Condor, according to court papers.

Avenger’s rapid growth led to an unsustainable debt load, as a limited supply of new full-flight simulators cost in excess of $10 million each. Some industry estimates claim only 50 full-flight simulators are produced each year.

Avenger’s customers filed for bankruptcy

Contributing to Avenger’s economic problems were bankruptcy filings by some of its major customers over the last four years, including Spirit in 2024 and 2025, and Interjet in 2022, as well as its Colombian partner Viva Air Colombia in 2023, according to court papers.

Avenger’s liquidity problems led to a restructuring in 2024 and subsequent defaults in 2025. The company discussed a second restructuring in October 2025 with its prepetition lender, which provided the debtor with $11 million in bridge financing.

Negotiations led to a stalking-horse bid agreement and debtor-in-possession financing loan proposal before filing for bankruptcy.

Avenger Flight Group locations:

  • Fort Lauderdale, Fla.
  • Orlando, Fla.
  • Las Vegas
  • Fort Worth, Texas
  • Irving, Texas
  • Minneapolis
  • Mexico City
  • Monterrey, Mexico
  • Madrid
  • Frankfurt
  • Medellín, Colombia

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