PenAir Files for Chapter 11 Reorganization Plan

PenAir, a major Alaska air carrier whose destinations include the fishing ports of Dutch Harbor, Sand Point, King Salmon, Dillingham and St. Paul Island, has filed for Chapter 11 bankruptcy.

In an announcement issued on August 7, PenAir chairman and chief executive officer Danny Seybert said that the action would keep scheduled air service operations in Southwest Alaska and the Boston area intact, while PenAir’s hubs in Portland, Ore., and Denver, Colo., would shut down scheduled service over the next 90 days.

PenAir routes in Alaska also include Cold Bay, St. George and McGrath.

“The steps we are taking will allow PenAir to emerge as a stronger airline, while continuing our focus on safe operations,” Seybert said. “The company will work with a restructuring officer to present a reorganization plan that will allow management to focus on its employees, safe operations, retiring debt and taking care of customers,” he explained.

PenAir has filed a request with federal transportation officials to end essential air service routes between Crescent City, Calif., and Portland, Ore.,, in addition to regional routes served from its Denver hub.

Alaska Public Radio noted that PenAir’s filing for bankruptcy came just two months after PenAir halted daily flight service to Unalaska, citing declining revenue from its contract with the US Postal Service.

Seybert’s father, Orin Seybert, founded PenAir at Pilot Point in 1955. The carrier is one of the oldest family owned airlines in the nation, and one of the largest regional airlines in Alaska.