Braniff Inc. announced Monday it was ceasing all scheduled passenger service immediately because a severe cash shortage doomed the airline's bankruptcy reorganization plan.
William G. McGee, the company's chairman, president and chief executive officer, said the action was taken to preserve assets while Braniff continues to develop alternatives, which might include selling the airline.
Braniff halted all passenger service at midnight Monday but will continue and expand its charter airline service while Merrill Lynch Capital Markets explores strategic alternatives, McGee said in a written statement.
McGee said Braniff employees would be notified of their individual status.
Braniff filed for bankruptcy court protection Sept. 28.
Braniff, which operated 46 of its 256 pre-bankruptcy flights Friday, was the first major carrier to file for bankruptcy after airline deregulation in the early 1980s.