ANCHORAGE (KTUU) - One of the largest flight carriers in the state has filed for a Chapter 11 bankruptcy. Peninsula Airways, better known as PenAir, was a major air carrier in Alaska. The company confirmed on Monday that it had filed a "Chapter 11 reorganization plan" over the weekend.
The case is located as having been filed in "akbke" - the online code for in the Alaska division of the United States Bankruptcy Court. The "bankruptcy petition number" for PenAir is listed online as 17-00282.
In a prepared statement released by the company, they stated, "This action will not affect scheduled air service operations in Alaska or Boston. PenAir’s Portland, Oregon and Denver, Colorado hubs will begin the process of closing scheduled service over the next 90 days."
The Portland, Oregon hub has already been shut down and will terminate all flight routes (except one essential air service route) by the close of business on Monday. They have also requested to end that essential air service route, that runs between Portland and Crescent City, California. The Denver, Colorado hub will be the next one to close.
PenAir CEO and Chairman Danny Seybert called the action one that "will allow PenAir to emerge as a stronger airline."