Ravn received bids today for all, or substantially all, of Ravn Air Group’s three airlines and their assets. And almost 30 bidders from inside and outside Alaska made diverse offers ranging from acquiring Ravn and all three of its airlines in their entirety, to those interested in purchasing significant portions of the company and others interested in buying individual aircraft and airport buildings. The U.S. Bankruptcy Court will convene tomorrow at 7am AKDT to hear from attorneys representing Ravn, its Lenders, and its unsecured creditors to address, among other things, the sale and auction process.
“Everyone working for Ravn before and after the impact of COVID-19 is thrilled with the amount of interest that our great team of employees and advisors have generated in saving Ravn and our three airlines. To a person, all of us remain optimistic that the company will have the opportunity to exit Chapter 11 protection, rehire our employees, resume operations, and restart the essential air service that we previously provided to 115 different communities around the state. We firmly believe that selling the Air Group as a going concern is the best outcome for all parties involved, as it will maximize creditor recoveries and also enable Ravn to continue providing the vital jobs, airlift, and community service that is so important to Alaska,” said Dave Pflieger, Ravn’s President & CEO.
Last week, Ravn Air Group announced that it has been approved by the U.S. Treasury to receive $31.6 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) Act Payroll Support Program (PSP) Grants — subject to Bankruptcy Court approval. This financing will be available to pay employee salaries and benefits to Treasury-approved bidders seeking to buy the entire Air Group.
About Ravn Air Group
Before it filed for Chapter 11 protection on April 5, 2020, following a 90% drop in bookings and revenue due to the arrival of COVID-19 in Alaska, and a resultant state-mandated travel ban to slow the spread of the Pandemic, Ravn was Alaska’s largest and most vital regional air carrier. The company and its three separate airlines were supported by over 1,300 employees, and it carried passenger, mail, freight, and charter customers to more than 115 destinations throughout Alaska.
Headquartered in Anchorage, Ravn Air Group operated a safe and highly reliable fleet of 72 aircraft on more than 400 flights per day, annually carrying over 750,000 passengers per year, from hubs and communities including Anchorage, Fairbanks, Galena, Barrow, Nome, Kotzebue, Unalakleet, Bethel, Aniak, St. Mary’s, McGrath, Dillingham, and King Salmon. In late 2018, Ravn acquired Peninsula Airways and its five Saab 2000s as part of a sale process that ended PenAir’s two-year financial bankruptcy and added the company to the Ravn Air Group portfolio. Later, in 2019, Ravn Air Group started Essential Air Service flying to St. Paul in the Pribilof Islands with its highly reliable 29 & 37 seat DHC-8 (Dash 8) aircraft.
Ravn Air Group’s two Part 121 air carriers are FAA-approved Safety Management System (“SMS”) airlines. In addition, in May 2018 and again in April 2020, RavnAir Alaska became one of a few regional airlines in the U.S. to pass the challenging International Air Transportation Association’s (IATA) Safety and Operational Audit (IOSA), and in 2019 RavnAir Alaska became the first and only IOSA-approved Part 121 regional airline in the State of Alaska.