RavnAir Group will park all 72 of its airplanes and temporarily lay off its remaining staff as the company files for bankruptcy after a sharp decline in passenger revenue amid the COVID-19 pandemic, the company said Sunday.
The flight company, which operates RavnAir Alaska, PenAir and RavnAir Connect, said in a written statement that it has lost 90% of passenger revenue as concerns over the spread of the virus ramped up. Gov. Mike Dunleavy on March 27 banned all nonessential travel within Alaska.
The company previously flew passengers, freight and mail to 115 rural Alaska communities.
RavnAir Group has filed for bankruptcy because of the company’s critical need for additional funding, according to an updated statement released Sunday.
The company has been in contact with other air carriers around the state since Thursday to determine new or replacement air services, the statement said. The company drastically cut its operations last week. According to the statement Sunday, remaining staff will be laid off “until the company is in a position to cover the costs of rehiring, resuming flights and operating to the many communities it serves through our state.”
Ryan Air will provide services to communities in the North Slope Borough, according to an online statement Thursday from the mayor’s office.
“These actions will allow the company to ‘hit pause’ and await word on its Federal CARES Act grant applications and other sources of financial assistance that will allow it to get through the Coronavirus crisis and successfully restart operations,” the statement said.
A spokeswoman for RavnAir Group declined to provide additional details Sunday.
Here’s the announcement:
Earlier coverage: Ravn suspends air service, including mail deliveries, to most rural Alaska communities