Alaska-based PenAir filing Chapter 11 reorganization plan; Service within Alaska to continue unchanged

FOR IMMEDIATE RELEASE
Today’s Date: August 7, 2017
CONTACT: Melissa Anderson, PenAir
V.P., Marketing and Sales
907-230-2913

Alaska-based PenAir has initiated the process of filing Chapter 11 reorganization with the State of Alaska. This action will keep scheduled air service operations in Southwest, Alaska and Boston, MA area intact, while PenAir’s Portland and Denver hubs will begin the process of shutting down scheduled service over the next 90 days.

“The steps we are taking today will allow PenAir to emerge as a stronger airline, while continuing our focus on safe operations,” said PenAir CEO and Chairman Danny Seybert.“We will be working with a restructuring officer to present a reorganization plan that will allow the management team to focus on our employees, safe operations, retiring debt and taking care of our customers.”

PenAir recently announced the termination of the Portland area regional routes as part of an immediate cost-cutting plan in the Pacific Northwest. All, but the EAS route in Crescent City, Portland, will be shut down effective close of business on Monday, August 7.This impacts scheduled flight operations between Portland and Klamath Falls and North Bend/Coos Bay, OR as well as Redding and Eureka/Arcata, CA. Today, PenAir added they will be closing the Denver, CO hub as well pending approval from the Department of Transportation.

PenAir is filing a request with the DOT to end Essential Air Service (EAS) routes between Crescent City, CA and Portland, OR and all regional routes served from its Denver hub. This will impact EAS routes operating between Denver and Liberal and Dodge City, KS and North Platt, Kearney and Scottsbluff, NE. Once approved, this transition usually takes 30 to 90 days until a new carrier can be secured in the market.

PenAir flies to eight destinations within Alaska including Dutch Harbor, Cold Bay, Sand Point, King Salmon, Dillingham, St. Paul, St. George and McGrath and three routes in the Boston area including Bar Harbor and Presque Isle, ME and Plattsburgh, NY. Passengers in both markets can expect continued operations with no changes to scheduled flight service. Employees in these markets will play a critical role in the reorganization process. “Our employees are a key part of our success and are doing everything we can to keep our PenAir family intact,” said Seybert.

Passengers scheduled to fly out of the Portland markets may contact the airline their travel was originally booked on, or PenAir at 800-448-4226.

About PenAir - PenAir, founded in 1955 by Orin Seybert in Pilot Point, Alaska, is one of the oldest family owned airlines in the United States. The airline is also one of the largest regional airlines in Alaska and the Northeast U.S., and one of the largest operators of Saab 340 aircraft in the US. System wide, PenAir has 700 employees and serves 25 destinations.

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