Ravn Air Group and its secured creditors (the Lenders) held an auction today for 14 bidders to buy the entire Air Group, its three separate airlines, or some/all of a series of bundled lots of Air Group’s assets.
Interest for the sales process was extremely high and winning bids were determined for 11 of the 12 lots that were focused primarily on RavnAir Connect Part 135 aircraft and facilities used in the company’s rural Alaska operations. Bidding for the Anchorage-based Part 121 airlines (RavnAir Alaska and PenAir) was continued into tomorrow, July 8, for these two remaining passenger air carriers and their respective assets. Once the entire auction process is complete, approval for all sales will be requested at the final Bankruptcy Court hearing on July 9th.
“As expected, there was a great deal of interest from other Alaska-based carriers in purchasing our rural Part 135 aircraft and facilities, and our entire team wants to thank everyone at RavnAir Connect and the many communities we have served over the years for helping us generate so much interest in trying to save our rural Alaskan operations. While we will no longer be able to restart our Part 135 carrier, we are hopeful that the other airlines that purchased this high value operation and its vital rural service will hire as many Ravn employees as possible,” said Dave Pflieger, Ravn’s President & CEO.
“Tomorrow’s auction will determine the future of the two remaining Anchorage-based Part 121 passenger carriers (RavnAir Alaska and PenAir), and we remain hopeful that the “going concern” bids we have received for those airlines will enable a new owner to resume that portion of the company’s operations to other vitally important communities such as St. Paul, McGrath, Dillingham, Sand Point, Cold Bay, Dutch Harbor, King Salmon, Kenai, Homer, Valdez, and elsewhere,” said Pflieger.
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.