Alaska-based PenAir has filed for Chapter 11 reorganization with the state of Alaska. PenAir’s Portland, Oregon and Denver, Colorado hubs will begin the process of closing scheduled service over the next 90 days.
The reorganization will not affect the routes between Presque Isle, Maine and Boston, Massachusetts.
“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, Oregon-area regional routes as part of an immediate cost cutting plan in the Pacific Northwest. All but the Essential Air Service (EAS) route between Portland, Oregon and Crescent City, California, were shut down on Monday.
The airline also announced the additional closing of the Denver hub pending approval from the Department of Transportation.
PenAir serves eight destinations within Alaska and three routes in the Boston area, including Bar Harbor and Presque Isle, Maine and Plattsburgh, New York. Passengers in both the Alaska and Boston 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 we are doing everything we can do to keep our PenAir family intact,” said Seybert.