RavnAir Group ceased all operations on April 5 and has since filed for Chapter 11 bankruptcy protection, Chief Executive Dave Pflieger said in an open letter. The Alaska-based holding operates three airline brands, RavnAir Alaska (operated by Corvus Airlines and Hageland Aviation Services), PenAir, and RavnAir Connect (operated by Hageland Aviation Services).
"The entire airline industry has been devastated by the COVID-19 pandemic and vitally necessary travel bans. Unfortunately, RavnAir Group, the largest regional airline in our state, has been similarly affected by this crisis. It is for that reason that today we made the extremely difficult decision to ground all seventy-two of our aircraft; stop all operations; temporarily lay-off all of our employees; and seek Chapter 11 protection in order to obtain immediate Debtor-in-Possession (DIP) funding," Pflieger wrote.
The group said it secured funding from lenders through the period of the Chapter 11 pendency.
RavnAir added that the filing will allow it to "hit pause and await word on its Federal CARES Act grant applications and other sources of financial assistance that will allow it to get through the Coronavirus crisis and successfully restart operations". It said that on top of the federal aid, it was also seeking private investment.
According to the ch-aviation fleets module, PenAir operated five Saab 2000s prior to the grounding, while Corvus Airlines operates ten Dash 8-100s. The group's fleet also included Beech 1900C, Beech 1900(F), Piper (twin piston) PA-31 Chieftain, Cessna (single turboprop) C208, and Cessna (single piston) C207 types.
RavnAir said it was in contact with other airlines to ensure that multiple remote, air-service-dependent communities in Alaska are not cut off from the world.
In the meantime, following an agreement with North Slope Borough, Ryan Air Alaska (7S, Aniak) will assume services to villages in Alaska's northernmost regions, the Anchorage Daily News said. The United States Postal Service is also seeking new contractors to haul mail to the Alaskan communities.
