PenAir Ordered to Sell to a Bidder Who Will Continue Operations
Aug 18, 2018, 1:51 pm
#1
Original Poster
Join Date: Mar 2005
Location: PDX
Programs: AS MVP Gold 100K
Posts: 2,989
PenAir Ordered to Sell to a Bidder Who Will Continue Operations
PenAir Ordered To Liquidate Over 'Quickly Deteriorating Cash Position' | KUCB
May be the end of an era in Alaskan aviation, as well as the end of a long term partner and feeder to AS.
May be the end of an era in Alaskan aviation, as well as the end of a long term partner and feeder to AS.
Aug 18, 2018, 8:36 pm
#2
Join Date: Jan 2010
Location: Anchorage, AK
Programs: CO - Onepass Gold Elite--> UA - MileagePlus Gold Premier--> Silver --> AS - MileagePlan MVPGOLD!
Posts: 735
Well, the thread over at A.Net is less dire, claiming that they've been ordered to sell to a buyer.
For some reason, I'm picturing that process as being different from liquidation.
But now that I think about it... maybe it's the same thing?
I think of liquidation as being a fire sale of every plane, nut, bolt, desk, pen, and pencil in the building.
But a sale could imply that they would continue operating, under new ownership.
So....... whatever, I just hope the best for everybody, and that they can land on their feet.
For some reason, I'm picturing that process as being different from liquidation.
But now that I think about it... maybe it's the same thing?
I think of liquidation as being a fire sale of every plane, nut, bolt, desk, pen, and pencil in the building.
But a sale could imply that they would continue operating, under new ownership.
So....... whatever, I just hope the best for everybody, and that they can land on their feet.
Aug 18, 2018, 8:37 pm
#3
Join Date: Jan 2010
Location: Anchorage, AK
Programs: CO - Onepass Gold Elite--> UA - MileagePlus Gold Premier--> Silver --> AS - MileagePlan MVPGOLD!
Posts: 735
They just posted this CORRECTION:
Correction: A previous headline for this story said PenAir had been ordered to “liquidate.” That word does not apply to the airline’s Chapter 11 bankruptcy proceedings, although it was used by city officials and is often used to refer to selling assets. Instead, PenAir has been ordered to sell its assets to a bidder who will continue to operate the airline. In an email to KUCB, Trustee Gerald McHale wrote: “The headline [made] it sound like we’re having a ‘liquidation sale,’ which most people equate to a closure of a business. This is clearly not the case here. The business will continue to operate, but under the control of the successful bidder.” KUCB has corrected the headline above.
Correction: A previous headline for this story said PenAir had been ordered to “liquidate.” That word does not apply to the airline’s Chapter 11 bankruptcy proceedings, although it was used by city officials and is often used to refer to selling assets. Instead, PenAir has been ordered to sell its assets to a bidder who will continue to operate the airline. In an email to KUCB, Trustee Gerald McHale wrote: “The headline [made] it sound like we’re having a ‘liquidation sale,’ which most people equate to a closure of a business. This is clearly not the case here. The business will continue to operate, but under the control of the successful bidder.” KUCB has corrected the headline above.
Aug 18, 2018, 9:54 pm
#4
Original Poster
Join Date: Mar 2005
Location: PDX
Programs: AS MVP Gold 100K
Posts: 2,989
They just posted this CORRECTION:
Correction: A previous headline for this story said PenAir had been ordered to “liquidate.” That word does not apply to the airline’s Chapter 11 bankruptcy proceedings, although it was used by city officials and is often used to refer to selling assets. Instead, PenAir has been ordered to sell its assets to a bidder who will continue to operate the airline. In an email to KUCB, Trustee Gerald McHale wrote: “The headline [made] it sound like we’re having a ‘liquidation sale,’ which most people equate to a closure of a business. This is clearly not the case here. The business will continue to operate, but under the control of the successful bidder.” KUCB has corrected the headline above.
Correction: A previous headline for this story said PenAir had been ordered to “liquidate.” That word does not apply to the airline’s Chapter 11 bankruptcy proceedings, although it was used by city officials and is often used to refer to selling assets. Instead, PenAir has been ordered to sell its assets to a bidder who will continue to operate the airline. In an email to KUCB, Trustee Gerald McHale wrote: “The headline [made] it sound like we’re having a ‘liquidation sale,’ which most people equate to a closure of a business. This is clearly not the case here. The business will continue to operate, but under the control of the successful bidder.” KUCB has corrected the headline above.
Aug 18, 2018, 11:44 pm
#5
A FlyerTalk Posting Legend, Moderator, Information Desk, Ambassador, Alaska Airlines
Join Date: Dec 2006
Location: FAI
Programs: AS MVP Gold100K, AS 1MM, Maika`i Card, AGR, HH Gold, Hertz PC, Marriott Titanium LTG, CO, 7H, BA, 8E
Posts: 42,953
Wonder who might take it over...
Aug 19, 2018, 12:56 am
#6
Join Date: Jan 2010
Location: Anchorage, AK
Programs: CO - Onepass Gold Elite--> UA - MileagePlus Gold Premier--> Silver --> AS - MileagePlan MVPGOLD!
Posts: 735
I mean, there's demand there. Obviously. Isolated markets.
And the fares they're charging... I mean, ANYONE should be able to operate profitably on a $450 fare from Anchorage to McGrath! That's an hour long flight in a Saab 340.
Aug 19, 2018, 12:47 pm
#7
A FlyerTalk Posting Legend, Moderator, Information Desk, Ambassador, Alaska Airlines
Join Date: Dec 2006
Location: FAI
Programs: AS MVP Gold100K, AS 1MM, Maika`i Card, AGR, HH Gold, Hertz PC, Marriott Titanium LTG, CO, 7H, BA, 8E
Posts: 42,953
Well. I still hope they can find a good, sustainable way to keep operating.
I mean, there's demand there. Obviously. Isolated markets.
And the fares they're charging... I mean, ANYONE should be able to operate profitably on a $450 fare from Anchorage to McGrath! That's an hour long flight in a Saab 340.
I mean, there's demand there. Obviously. Isolated markets.
And the fares they're charging... I mean, ANYONE should be able to operate profitably on a $450 fare from Anchorage to McGrath! That's an hour long flight in a Saab 340.
Aug 19, 2018, 5:22 pm
#10
FlyerTalk Evangelist
Join Date: Nov 2009
Location: SEA (the REAL Washington); occasionally in the other Washington (DCA area)
Programs: DL PM 1.57MM; AS MVPG 100K
Posts: 21,371
which translates to 14-15 out of 37 seats on a Saab 340
edit: 18 of 45 on the Saab 2000 — just saw later posts from UAPremierExec and Chugach; I’d forgotten KS has the bigger version
edit: 18 of 45 on the Saab 2000 — just saw later posts from UAPremierExec and Chugach; I’d forgotten KS has the bigger version
Last edited by jrl767; Aug 22, 2018 at 6:51 pm Reason: as noted
Aug 21, 2018, 1:47 am
#12
Moderator: Manufactured Spending
Join Date: Jul 2011
Posts: 6,580
No.
I hate to say it, but these flights simply may not be feasible without subsidies. Many communities in Alaska have subsidized flights. Those that don't might lose service altogether. If PenAir couldn't make these flights work out, it's questionable whether anyone else can.
I hate to say it, but these flights simply may not be feasible without subsidies. Many communities in Alaska have subsidized flights. Those that don't might lose service altogether. If PenAir couldn't make these flights work out, it's questionable whether anyone else can.
Aug 21, 2018, 12:40 pm
#13
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,933
No.
I hate to say it, but these flights simply may not be feasible without subsidies. Many communities in Alaska have subsidized flights. Those that don't might lose service altogether. If PenAir couldn't make these flights work out, it's questionable whether anyone else can.
I hate to say it, but these flights simply may not be feasible without subsidies. Many communities in Alaska have subsidized flights. Those that don't might lose service altogether. If PenAir couldn't make these flights work out, it's questionable whether anyone else can.
- Less frequent flights
- "Roundup" flights -- ie, a flght which goes to small airport A and small airport B and small airport C before going to its final destination. Then as long as the sum of the traffic to airport A, B, and C is enough to make it work, it may work better than separate flights for each of those small airports.
I've seen examples of this in international flights by some legacies, who couldn't afford to subsidize a separate flight to B but it was far from home base to A but not far from A to B and they had spare time on the plane at A, so they added a short connecting flight from A to B, and thus now had service from their home base to both A and B, at not much more than the cost of just serving A. For example, AA did this to Montevideo, Uruguay, as an extension of one Buenos Aires, Argentina, flight from the USA.
Last edited by sdsearch; Aug 21, 2018 at 12:46 pm
Aug 21, 2018, 11:59 pm
#14
A FlyerTalk Posting Legend, Moderator, Information Desk, Ambassador, Alaska Airlines
Join Date: Dec 2006
Location: FAI
Programs: AS MVP Gold100K, AS 1MM, Maika`i Card, AGR, HH Gold, Hertz PC, Marriott Titanium LTG, CO, 7H, BA, 8E
Posts: 42,953
I don't know where these communities are, but some possibilities which perhaps PenAir didn't consider:
I've seen examples of this in international flights by some legacies, who couldn't afford to subsidize a separate flight to B but it was far from home base to A but not far from A to B and they had spare time on the plane at A, so they added a short connecting flight from A to B, and thus now had service from their home base to both A and B, at not much more than the cost of just serving A. For example, AA did this to Montevideo, Uruguay, as an extension of one Buenos Aires, Argentina, flight from the USA.
- Less frequent flights
- "Roundup" flights -- ie, a flght which goes to small airport A and small airport B and small airport C before going to its final destination. Then as long as the sum of the traffic to airport A, B, and C is enough to make it work, it may work better than separate flights for each of those small airports.
I've seen examples of this in international flights by some legacies, who couldn't afford to subsidize a separate flight to B but it was far from home base to A but not far from A to B and they had spare time on the plane at A, so they added a short connecting flight from A to B, and thus now had service from their home base to both A and B, at not much more than the cost of just serving A. For example, AA did this to Montevideo, Uruguay, as an extension of one Buenos Aires, Argentina, flight from the USA.
WX plays a very difficult role in operations to a significant part of the KS system.
Aug 22, 2018, 12:42 pm
#15
Join Date: Sep 2001
Programs: Alaska Tanzanite 100K
Posts: 3,858
A self-inflicted wound. Danny S. said some nasty things to the pilot group 2 years ago and they lost ALOT all at once -they gave him a big F-U. Also the Saab 2000 additions haven't panned out like they expected; its an expensive airplane. The pilot shortage is why KS had to trim operations everywhere and its cost them dearly.