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Business/Economy

Ravn Air Group to be auctioned in closed-door event Tuesday

Some of the Ravn Connect Part 135 aircraft that serve rural Alaska have been parked at Palmer Municipal Airport on Thursday, April 2, 2020, due to the COVID-19 pandemic. (Bill Roth / ADN)

Fourteen bidders are interested in at least part of Alaska’s largest rural air carrier, but the winners may not be known until Wednesday.

Ravn Air Group, including PenAir, RavnAir Alaska and RavnAir Connect, declared bankruptcy in April and will be sold at auction in a private event on Tuesday. Neither attorneys nor the auction’s administrator responded to questions on Tuesday, but Debbie Reinwand, a spokeswoman for Ravn, said the auction is closed to the public.

A list of prospective bidders has not been made public.

In a written statement, RAVN said the airline’s creditors set a minimum price of $43 million for all of the airline’s assets, making it more likely that Ravn will be broken up.

Dave Pflieger, Ravn’s president and CEO, said that while there is “a great deal of interest from other airlines in Alaska in purchasing Ravn’s assets,” he hopes there will be bids that allow some or all of the company’s airlines to continue operating.

Court proceedings have been held in Delaware, and a hearing has been scheduled for 7 a.m. Alaska time on Wednesday to finalize the results of the auction.

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