Ravn Air Group has announced it has successfully bid to acquire assets belonging to bankrupt Alaska-based carrier PenAir (Anchorage Ted Stevens) for USD12.3 million.
PenAir entered into Chapter 11 bankruptcy in August last year citing debts of over USD10 million. The auction took place on October 3 following which Ravn Air Group's parent firm, J.F. Lehman & Company, was awarded PenAir's assets. Wexford Capital, a Connecticut-based company that manages hedge funds, also submitted a bid.
Although the transaction has already secured formal approval from the US Bankruptcy Court in Anchorage, it is still awaiting the official nod from both the US Department of Transportation and the Federal Aviation Administration.
"We are thrilled with this outcome," Dave Pflieger, President and CEO of Ravn Air Group, said. "It is a win for all parties — our Alaska customers and communities, as well as PenAir and Ravn employees alike."
PenAir will keep its current name and continue to operate as a separate company under a separate FAA certificate as a subsidiary of Ravn Air Group, which will now have a significantly enhanced ability to serve the state of Alaska.
Ravn Air Group's other member carriers include Corvus Airlines (dba Ravn Alaska), Frontier Flying Service, and Hageland Aviation Services all of which specialize in Alaskan operations. Penair currently operates an all-Saab (Sweden) fleet of six Saab 2000s, three Saab 340Bs, and four S340B(Plus)s on scheduled passenger flights from its Anchorage Ted Stevens base to Saint Paul Island, Saint George, AK, Dillingham, King Salmon, Sand Point, and Cold Bay.
For its part, Ravn Air Group is headquartered in Anchorage operates a fleet of almost 70 aircraft on more than 400 flights per day from hubs in Anchorage, Fairbanks International, Bethel, Aniak, Saint Mary's, Nome, Kotzebue, Unalakleet, Utqiagvik Barrow, and Galena.
