California firm to buy assets of Alaska’s RavnAir for $8M
ANCHORAGE, Alaska (AP) — Large airplanes and regional service certificates owned by Alaska’s RavnAir Group are expected to be purchased by a Southern California firm for $8 million.
Float Shuttle plans to take over six of the Dash-8 aircraft and two federal operating certificates owned by RavnAir’s services, Corvus and PenAir, Alaska Public Media reported Thursday.
The carriers flew passengers from Anchorage to the Aleutian Islands, the Kenai Peninsula and various rural Alaska destinations.
RavnAir cited the economic impact of the coronavirus when the company halted operations April 5, laying off staff and filing for bankruptcy protection.
The company previously operated more than 400 flights per day, using a fleet of 72 aircraft. After the coronavirus outbreak, passenger traffic dropped more than 90%.
“This is a way for us to do what we had hoped to do which is be able to resume Part 121 operations in the state of Alaska and get employees rehired,” RavnAir attorney Jane Kim said after a bankruptcy hearing Thursday.
Float Shuttle plans to take advantage of a $31.6 million payroll support loan the federal government offered to a RavnAir successor, Kim said.
The $8 million price is far below the $19 million RavnAir set as a minimum bid at a failed auction for the certificates and nine Dash-8 planes.
Kim did not release details of when Float Shuttle plans to resume Alaska service.
Float Shuttle, which stands for “FLy Over All Traffic,” operates commuter service for Southern California drivers hoping to avoid traffic by flying on the company’s Cessna Caravans. Monthly subscriptions cost $1,250, the company’s website said.