There is no doubt the financial impact of the current Coronavirus COVID-19 pandemic is having a massive effect on the global aviation industry. Airlines around the world struggling to meet commitments and ever-mounting outgoings, with so little coming in that it was only a matter of time before bankruptcies and collapses started to come into the news. Thomas Cook Aviation, the German charter airline was one of Europe's first airlines to collapse due to the pandemic and now, the RavnAir Group is one of the first in North America to do so.
The RavnAir Group, Alaska’s largest regional airline has grounded its seventy-two aircraft, stopped all operations, temporarily laid-off all employees and sought Chapter 11 protection in order to obtain immediate Debtor-in-Possession (DIP) funding.
The management took those actions in the hope the carrier has a future, to give it time to “hit pause” for a while as it seeks some federal funding from part of the CARES Act as well as search for other sources of financial assistance.
How long that will take is uncertain, especially as no-one can really say how long the coronavirus pandemic and travel lockdown will last, however it could be many months before anything like normality resumes.
RavnAir 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.
RavnAir 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.
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