The auction Wednesday for Ravn Air Group’s two Anchorage-based Part 121 passenger air carriers (“RavnAir Alaska” and “PenAir”) was adjourned without a sale after Ravn’s secured creditors (the Lenders) and Unsecured Creditors Committee determined that bids received were not high enough to be acceptable.
As a result, the Company will only seek approval at Friday’s Bankruptcy Court hearing of the other 11 asset lots successfully sold at yesterday’s auction that was focused primarily on RavnAir Connect Part 135 aircraft and facilities used in rural Alaska operations.
Dave Pflieger, Ravn’s President & CEO: “While it was disappointing that no one has yet emerged as a successful bidder of our two remaining airlines, the auction process will not be concluded until our Lenders decide to end the formal court approved sales process, make the Plan of Liquidation effective, and place the remaining airlines and their respective assets into a liquidating trust. Given those facts, we remain optimistic that a new owner will still be able to step in and restart one or more of our two Part 121 airlines.”
Before it filed for Chapter 11 protection on April 5, 2020, following a 90% drop in bookings and revenue due to COVID-19, Ravn was Alaska’s largest and most vital regional air carrier. The company and its three separate airlines were supported by over 1,300 employees, and it carried passenger, mail, freight, and charter customers to more than 115 destinations throughout Alaska.