Published on : Tuesday, April 7, 2020
RavnAir Group filed for bankruptcy Sunday and grounded all of its 72 planes as it waits on a decision from U.S. Treasury for government assistance. The Trump administration is weighing applications from numerous airlines as it considers how to disburse $25 billion in passenger airline grants, $4 billion for cargo carriers and $3 billion for airport contractors.
The congress approved the bailout funds to help air carriers cover payroll costs. RavnAir, which filed for Chapter 11 bankruptcy protection in Delaware, said Sunday it was suspending all operations and laying off all employees.
The airline said that they took these actions to ensure their airlines and has future, and it is the time to give time and to hit a pause, while it seeks Treasury grants and “other sources of financial assistance that will allow them to weather the coronavirus pandemic and emerge successfully once it has passed.
In a letter posted Sunday, RavnAir Chief Executive Dave Pflieger said the airline was working to resume the vital air service you depend on to get home to your families, to your businesses, to medical appointments, and to other duties that are essential to our communities and the state of Alaska.
Delta Air Lines, American Airlines, Spirit Airlines, Southwest Airlines, United Airlines and JetBlue Airways are among the airlines that confirmed they filed before a Friday deadline set by Treasury to get speedy consideration.