26 December, 2018

Ravn Air Group confirms acquisition of the PenAir assets.

Ravn Air Group, Inc. has announced today the purchase of the assets of Peninsula Airways by one of its subsidiaries.  PenAir has its HQ in Anchorage, Alaska and operated passenger, cargo and charter flights to seven destinations in Southwest Alaska and the Aleutian and Pribilof Islands. 

Ravn is a leading provider of regional air services in Alaska, employing over 1,000 employees in the state, has a fleet of almost 70 aircraft, which provides passenger, freight, and charter air transportation services to over 115 destinations throughout Alaska.

"This is a big win for Ravn Air Group, as well as for PenAir and all of our team members, customers, and Alaska communities," said Dave Pflieger, President and CEO of Ravn. "The two companies coming together provides an incredible opportunity to better connect Alaska, with the ability to provide broader, more reliable, and more consistent service."

PenAir was put into chapter 11 bankruptcy protection earlier in the year following increasingly difficult trading conditions, partly due to increased pressure from Ravn Air. The deal followed a court order that required PenAir be sold to pay off debts, estimated to be at least $15million. Ravn Air Group paid $12.8 million for the company and, we're told that it was on condition that PenAir CEO Danny Seybert be sacked. The Seybert family have owned and run PenAir for more than 50 years. 

"The acquisition of PenAir represents another successful step in expanding Ravn's unique service offering and enables us to better serve the residents and businesses of Alaska," said Alex Harman, Partner at JFLCO. "PenAir's exceptional safety culture and talented group of employees represent a strong fit, and we are pleased to welcome them to Ravn Air Group," added Will Hanenberg, Principal at JFLCO.  JFLCO is J.F. Lehman & Company, Inc, a private equity firm based in New York 

Ravn Air Group has been at the centre of at least 28 deaths in a series of accidents and crashes since 1987.