Ravn Air Group Auction Scheduled for Tomorrow, July 7th

14 qualified bidders have stated their intent to participate in an auction to be held tomorrow, July 7th, where they can bid to buy the entire Air Group, separate airlines, or some/all of a series of bundled lots of Ravn Air Group’s assets. Following the auction, Ravn and its Lenders will then seek approval of these sales at a final Bankruptcy Court hearing on July 9th.

While bids will still be solicited to acquire Ravn as a “going concern,” which would enable the entire Air Group (and all three of its airlines) to return to service and rehire employees, Ravn’s secured creditors (the Lenders) recently set $43 million as the minimum bidding price for this entire group of assets. As a result, the primary focus of the auction will now be on the airlines and assets separately associated with the Part 135 (RavnAir Connect) and Part 121 (RavnAir Alaska and PenAir) certificates.

“While we are seeing a great deal of interest from other airlines in Alaska in purchasing Ravn’s assets, particularly our rural Part 135 facilities and aircraft, we look forward to seeing “going concern” bids for some or all of our three airlines which would enable us to preserve as many jobs as possible throughout the state and the many communities we served before the arrival of COVID-19,” said Dave Pflieger, Ravn’s President & CEO.

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.