FEBRUARY 26, 2024 — 130 EMPLOYEES TERMINATED IN ANOTHER RESTRUCTURING
According to Ravn Alaska’s CEO Rob McKinney…
“This is like what so many other airlines have gone through to become a viable service that can then begin to grow anew.
The hard truth is that we never really left oldco [old company] in the past. Due to the need to restart as quickly as we did, we ended up adopting many practices and policies that are inefficient at best.
Despite our best efforts with schedules, pricing, and previous attempts at right-sizing, we still were not hitting the profitability mark.
Ravn will emerge as a stronger company as a result of the restructuring.
APRIL 13, 2020 — Original post…
Anchorage, Alaska-based RavnAir Group, the largest rural airline serving more than 100 remote Alaskan communities with scheduled passenger and cargo services, has announced that it would idle all of the company's 72 aircraft, layoff up to 1,300 employees, and seek Chapter 11 bankruptcy.
A company statement noted:
“RavnAir Group today announced that due to the global COVID-19 pandemic and the unprecedented loss of 90% of passenger revenue at all three of its airlines (RavnAir Alaska, PenAir, and RavnAir Connect) it must, for the time being:
• Park all seventy-two (72) of its aircraft;
• Stop all operations; and
• Temporarily lay off all remaining staff until the company is in a position to cover the costs of rehiring, resuming flights, and operating to the many communities it serves throughout our State.
Because of the company’s critical need for additional funding, Ravn has also filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Ravn’s lenders have agreed to provide financing during the pendency of Chapter 11. This filing will allow the company to “hit pause” and await word on its Federal CARES Act grant applications and other sources of financial assistance that will allow it to get through the Coronavirus crisis and successfully restart operations.
The company is also actively seeking private investment as well. Ravn has been in contact with the CEOs of other air carriers around the State since last Thursday, April 2nd to help them establish new or replacement air service wherever possible, and it will continue those efforts during this uncertain period of time before the company can resume its own operations.”
Like all airlines, drastic restrictions on passengers has interrupted cash flow amid significant continuing expenses.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?