Alaska’s RavnAir Group throws in the towel

RavnAir Group, the owner of PenAir (KS, Anchorage Ted Stevens), Corvus Airlines (7H, Anchorage Ted Stevens), Hageland Aviation Services (H6, Saint Mary’s), and Frontier Flying Service (FTA, Fairbanks Int’l), has proposed to sell all of its assets to repay debts, thus admitting that it does not intend to relaunch after restructuring, the Alaska Public Radio has reported.

The plan has yet to be approved by the court overseeing the group’s Chapter 11 proceedings.

All RavnAir Group airlines suspended operations in early April 2020, facing an 80-90% drop in passenger demand due to the COVID-19 pandemic. The group, which owned 72 aircraft and employed around 1,300 staff around Alaska, had USD90 million in debts at the time.

The airline said in a court filing that it was unable to secure any federal funds under the CARES Act – neither for payroll support nor for general purposes. Any loans would only be possible if the airline came up with a plan to repay its debt, which was not attainable.

If the court approves the group’s liquidation plans, all of its assets, including aircraft, will be transferred to a supervised liquidation fund and then sold. The approval would also immediately result in RavnAir Group and all of its subsidiaries being dissolved.

Despite operating exclusively within Alaska, the group is incorporated in Delaware, and court proceedings take place there.

According to the ch-aviation fleets advanced module, Corvus Airlines owns nine Dash 8-100s and PenAir one Saab 340B. The remainder of the group’s aircraft are rotary-wing or fixed-wing under 19 seats.

https://www.ch-aviation.com/portal/news/89788-alaskas-ravnair-group-throws-in-the-towel