Tuesday, August 15, 2017

PenAir submits Notice triggering Department of Transportation Process to subsidize Essential Air Service to St. Paul, St. George & McGrath

Anchorage, Alaska - PenAir has initiated the process with the U.S. Department of Transportation to subsidize essential air service to the Pribilof Islands of St. Paul and St. George, and McGrath.

As part of the company’s Chapter 11 reorganization and restructuring plan. “These steps will allow PenAir to seek subsidy from the DOT to continue to provide essential air service to these markets which we have been serving for nearly six decades,” said PenAir CEO and Chairman Danny Seybert. “Since filing Chapter 11, we must be prudent in our efforts to streamline our business plan and develop a solid financial plan that will allow us to emerge from bankruptcy. It would be our desire to continue to provide service in the routes we are currently serving within Alaska and today’s DOT notice will help achieve that goal. A key commitment of the DOT’s Essential Air Service is to maintain a minimal level of scheduled air service to communities through the payment of subsidies, if necessary.”

PenAir flies to seven destinations within Alaska including 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. PenAir also operates under a Capacity Purchase Agreement with Alaska Airlines to operate to/from Unalaska. Passengers on the St. Paul, St. George and McGrath routes will continue to receive service with no changes to scheduled flights. Employees supporting these flights 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.

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 passenger aircraft in the US. System wide. PenAir operates both Saab 340 and Saab 2000 aircraft. Their route structure serves over 20 destinations.

Original article can be found here ➤ http://www.akbizmag.com

No comments: