Silver Airways acquires Puerto Rico-based airline

Fort Lauderdale-based Silver Airways announced it has finalized its acquisition of Seaborne Airlines, creating a fleet of 31 aircraft connecting Florida to the Caribbean, Bahamas, Puerto Rico, U.S. Virgin Islands and beyond.

Terms of the deal were not announced Monday. The merged airline will employ nearly 1,000 people and be headquartered at Silver Airways’ Fort Lauderdale offices under the leadership of executives of both companies, a news release said.

Corporate and operations support functions will continue at locations in Fort Lauderdale; Orlando; Tampa; San Juan, Puerto Rico; and St. Croix, U.S. Virgin Islands.

The combined airline will continue operating under the two respective brand names for the time being, according to the announcement.

Silver Airways will operate between Florida, the Bahamas and other destinations, while Seaborne-branded flights will continue throughout Puerto Rico, the Virgin Islands and the Caribbean.

A merger of the operating functions and branding, plus “streamlining of the guest experience,” is expected to occur within the next year, according to the announcement.

Silver Airways CEO Steve Rossum will remain as CEO of the merged airline, which combines similar Saab 340B fleets and common operational partners, including United, Jet Blue, American, Delta and more.

Headquartered in San Juan, Puerto Rico, Seaborne began by flying sightseeing tours over Alaska and the Virgin Islands in the early 1990s. Seaborne Airlines brings to the merger its de Havilland DHCTwin Otter seaplanes and its status as the Caribbean region’s largest regional airline.

After suffering financially from the impacts of hurricanes Harvey and Irma last year, the airline announced in January plans to restructure under Ch. 11 bankruptcy organization and sell its assets to Silver Airways.

Founded in 2011 with assets from the bankrupt Gulfstream International Airlines, Silver is owned by affiliates of Versa Capital Management LLC, a Philadelphiabased investment firm. Additionally, Versa Capital is Seaborne’s largest creditor and majority owner.

Silver last week announced it took delivery of its first ATR-600 turboprop, 46-passenger plane and has a firm order for 19 more. In August 2017, Silver announced it had inked a deal to spend as much as $1 billion for up to 50 of the new French-made aircraft.

The new planes, which will gradually replace the Saabs, offer “best-in-class quiet cabins, premium leather seats with more legroom, and spacious overhead bins that accommodate full-size, carry-on roller bags,” the airline said.