UPDATE: RavnAir ceases all operations until further notice and declares bankruptcy
The announcement came after bookings with the airline dropped by almost 90% amid the spread of coronavirus in Alaska. Until Sunday, it was still serving 112 communities but has dropped three routes.
RavnAir has officially grounded all aircraft and ceased operations as the airgroup declared bankruptcy Sunday. RavnAir CEO Dave Pflieger made the announcment in a letter on Ravn's website, saying, "We took these actions to ensure our airline has a future, and give us time to 'hit pause' while we seek federal CARES Act grants and other sources of finanicial assistance."
The air group is also temporarily laying off all staff, according to a press release, "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.”
RavnAir has been working with other air carriers to help find new or replacement providers.
All previously scheduled flights have been cancelled. You can find the letter on RavnAir's website.
There has been a steep reduction in flights around Alaska due to the coronavirus pandemic. The state’s largest regional airline, Ravn PenAir, has adjusted its operations due to those losses.
Ravn public relations spokesperson Debbie Reinwand said in an email that bookings are down by almost 90%.
“We have reduced our schedules due to reduction in bookings. We have not reduced schedules to the degree bookings have dropped,” she said.
The airline is still serving 112 communities but has dropped three routes — Anchorage to Fairbanks, Anchorage to Kotzebue and Fairbanks to Deadhorse. Reinwand said those areas are being served by other airlines.
Ravn also grounded all Saab aircrafts, one Dash-8 and several Piper Navajos. The air group is currently in the process of loading revised flight schedules into their system.
Last week, Ravn laid off a total of 301 employees. Its staff normally numbers over 1,300 people. The air group's CEO and other officials are also taking a 20% pay cut.
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