A North Dakota air-taxi service that was heavily funded by state and local governments has defaulted on its aircraft lease payments, and its aircraft, a Cirrus SR22 and a Diamond DA42 Twin Star, have been repossessed by the bank holding the leases on the airplanes. The Fargo Forum reported last week that Point2Point Airways owes Northland Financial $362,000. A judge ordered the company to repay the money and started the clock on interest on June 26 at the rate of $70.90 a day. Point2Point quit flying at the end of April after a tough winter. The company was unable to fly its two aircraft in icing conditions, and that put a major crimp in the operations of the Bismarck-based on-demand operator. The company attracted more than $2 million in start-up funding from government sources. The city of Bismarck contributed $1.25 million after it received a $250,0000 federal grant to study the proposition. The State of North Dakota chipped in more than $200,000 and NASA is on the hook for $350,000.
Point2Point Airways Aircraft Repossessed
Key Takeaways:
- North Dakota air-taxi service Point2Point Airways defaulted on its aircraft lease payments, leading to the repossession of its Cirrus SR22 and Diamond DA42 aircraft and a debt of $362,000 to Northland Financial.
- The company ceased operations due to an inability to fly its aircraft in icing conditions, which severely impacted its business during a tough winter.
- Point2Point Airways had received substantial government funding, totaling over $2 million from the city of Bismarck, the State of North Dakota, and NASA.
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