The Kenai City Council will hold an open hearing regarding a resolution that would help resolve the lease at the Kenai Airport held by RavnAir Group, which sold many of its assets to FLOAT Shuttle. FLOAT’s purchase of the assets was made official in July. Their aim is to resume flights everywhere RavnAir previously flew, with the exception of Kodiak. The public hearing will take place during the City Council meeting on Wednesday, September 16, at 6:00 p.m.
Resolution 2020-78 proposes to approve a stipulation with RavnAir Group, that is currently in bankruptcy, to allow the bankruptcy judge to reject RavnAir Group’s ongoing lease at the Kenai Airport effective September 8. Past due lease payments will be allowed as an administrative claim in the bankruptcy pursuant to the stipulation.
The resolution also aims to authorize City Manager Paul Ostrander to enter into a new Airline Operating Agreement with FLOAT Shuttle, effective September 8. FLOAT Shuttle plans to continue to operate in Alaska as Corvus Airlines, Inc. They will be responsible for financial obligations to the airport pursuant to the Airline Operating Agreement as of September 8.
RavnAir Group filed for Chapter 11 bankruptcy on April 5, due to financial stress caused by the COVID-19 public health emergency. They ceased all operations and laid off all staff.
Meetings can be attended in-person at the City Hall Council Chambers. The city encourages attending virtually. To join the meeting via the Zoom online platform, visit: https://us02web.zoom.us/j/88612469335. To dial-in via telephone, call (253) 215-8782 or (301) 715-8592. Regardless of the method used to join, the Meeting ID is 886 1246 9335 and the Passcode is 874477.
