Corvus Airlines d.b.a. RavnAir Group was a regional airline that specialized in serving the small communities in the US state of Alaska.
The airline was headquartered in Anchorage, which is also home to the primary hub used by Ravn, Ted Stevens Anchorage International Airport.
Parent company: Corvus Airlines
Headquarters: Anchorage, AKCEO: David Pflieger (Aug 8, 2017–)
Subsidiaries: Frontier Flying Service, PenAir, Peninsula Aviation Services, Inc.
Hubs: Ted Stevens Anchorage International Airport, MORE
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 coverthe costs of rehiring, resuming flights, and operating to the many communities itserves 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 the 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.
As you know, we have been urgently seeking the funding necessary to restart our airline and bring vital air service back to Alaska. The grounding of our aircraft, furlough of our employees, and filing of Chapter 11 bankruptcy were all critical to our ability to survive a 90% drop in passenger bookings and revenue due to the COVID-19 Pandemic.
A key part of our needed funding is support from the U.S. Treasury’s CARES Act (Coronavirus Aid, Relief and Economic Security). Unfortunately, we received news this week that while eligible for payroll grant assistance, we will not be eligible for loans because the Treasury is using an Available Seat Mile (ASM) formula for loan allocations that does not enable smaller airlines to get material CARES Act assistance.
This flawed formula massively favors large well-capitalized airlines and leaves very little for small regional carriers like Ravn. It is not representative of the criticality of an airline to its state, its communities, and its citizens, and it would provide only $5.2 million of the $75 million we requested. In short, it will mean the end of our company as we know it. We believe that the small regional carriers should be exempt from the ASM allocation method and have ideas on more reasonable allocation methods, but we need the Treasury to listen to us today.
Here is where you can help. Although our Senators and Congressman have been fantastic supporters, the only way to reach Treasury officials is through the White House.
As a result, I would ask that you use your social media accounts, especially Twitter, or take to your phones, and send the following messages to President Trump [@realDonaldTrump]:
- #SaveRavnAirAlaska Alaska’s largest regional airline @realDonaldTrump
- Drop the Available Seat Mile (ASM) formula for #CARESAct loans to airlines @USTreasury @StevenMnuchin1
- Ensure small airlines get critical federal aid. #COVID19 #Coronavirus #Bailout #SaveRavnAirAlaska
- Without federal assistance, rural Alaskans will go without vital food, medicine, and air service @realDonaldTrump @USTreasury @StevenMnuchin1 #SaveRavnAirAlaska
SAVE RAVNAIR ALASKA, ALASKA’S LARGEST REGIONAL AIRLINE
- ENSURE SMALL AIRLINES GET CRITICAL FEDERAL AID.
- DROP THE AVAILABLE SEAT MILE (ASM) FORMULA FOR AIRLINES THAT ARE REQUESTING LESS THAN $100 MILLION IN CARES ACT LOANS. (I.E. ESTABLISH THE SAME CARVE OUT THAT WAS PUT IN PLACE FOR SMALL CARRIERS APPLYING FOR CARES ACT GRANTS).
WITHOUT FEDERAL ASSISTANCE, RAVN AND ITS THREE AIRLINES WILL BE LIQUIDATED AND RURAL ALASKANS WILL GO WITHOUT VITAL FOOD, MEDICINE, AND ESSENTIAL AIR SERVICE.
Thank you for your help with this urgent request. Please take a look at our website for additional information www.flyravn.com.
With my best regards,
President & CEO of RavnAir Alaska