In papers filed with the US Bankruptcy Court in Miami the company declared assets of $10 million to $50 million and listed debts of $100 million to $500 million.

Around 450 employees have been laid off but it is understood that Arrow has temporarily retained a workforce of 130. The company's chief restructuring officer, Doug Yakola, said: "The debtors intend to implement the orderly wind-down of their scheduled service operations and the liquidation of their assets, subject to the availability of charter flying and any potential sale transaction that may arise in Chapter 11."

Arrow operated more than 60 flights a week to and from Central and South America and the Caribbean. It operated seven DC-10s on behalf of customers such as the US Postal Service and the Department of Defense, and won certification from the FAA last year to fly B757-200s.

The carrier reorganized under Chapter 11 in June 2004 but ran back into difficulty. It is reported to have lost $28 million in 2008 and a further $26 million in 2009, despite reducing its operating costs by restructuring aircraft leases.

"Arrow Air has experienced significant operating losses as a result of increasing operating costs and declining revenue," the company said in a statement. "The decision was not made lightly and was a last resort after the company exhaustively searched for other options including financing or a sale of the business."

"The increase in jet fuel prices outpaced the debtors' ability to increase their charges for services, causing the debtors to incur significant recurring operating losses and accumulation of a large operating deficit."

Arrow announced plans to lay off 473 workers in April as it tried to escape bankruptcy. A fellow Miami-based cargo carrier, Centurion Air, was reported at that time to be preparing a bid.

Centurion, which specializes in shipments of live animals and perishables, is one of the leading operators to and from Latin America. It is developing a new 400,000 sq ft cargo center at Miami International Airport that will accommodate the nine MD-11 aircraft it plans to be operating by the end of this year, replacing a current fleet of three MD-11Fs and four DC10-30Fs.