U.S. Bankruptcy Court Confirms Ravn Air Group Can Avoid Liquidation Through A Sale Process

The Honorable Brendan L. Shannon in the United States Bankruptcy Court for the District of Delaware today authorized Ravn Air Group to run a sales process for all or substantially all of its three airlines and their assets in parallel with the consideration of the plan of liquidation that was initiated when the airline filed for Chapter 11 protection. Ravn’s filing on April 5th arose after it, like many other airlines around the world, experienced a 90% loss of passenger sales and revenue due to the impact of the COVID-19 Pandemic and subsequent passenger travel restrictions.

Judge Shannon also established June 24, 2020 as the deadline for Ravn Air Group to receive bids for all or substantially all of its three airlines and other assets. “This is great news for our creditors, our employees, and our customers who are eager to know the future of Ravn Air Group and how soon it will be before our airline can get back in the air and resume vital air service to 115 rural and urban communities that are currently struggling from non-existent or limited service following the requirement that we park our 72 aircraft.” 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 this 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 March 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). As a result of these successful audits, RavnAir Alaska is the first and only IOSA-approved Part 121 regional airline in the State of Alaska.