Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Alaska warned U.S. government its largest regional airline was on verge of collapse: letter

share with twitter share with LinkedIn share with facebook
share via e-mail
04/06/2020 | 07:10pm EDT
FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham

Alaska's congressional delegation warned U.S. Treasury Secretary Steven Mnuchin last week that many of its airlines, including its largest regional carrier, RavnAir Group, were on the verge of collapse, according to a letter seen by Reuters.

"Without badly needed federal support, many of our air carriers are in danger of bankruptcy and failure and could leave many of our rural and Alaska Native communities completely isolated," U.S. Senators Lisa Murkowski and Dan Sullivan and Representative Don Young said in the Friday letter.

The Treasury Department had no immediate comment.

RavnAir filed for Chapter 11 bankruptcy on Sunday, laying off nearly its entire staff and grounding all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash.

Its Chapter 11 filing underscored the challenges facing other U.S. regional carriers that, like larger airlines, are seeking federal aid to help them through the worst downturn the industry has ever faced.

Alaska is more dependent on passenger and air cargo transport than any other state in the country because over 80% of the communities are only accessible by air.

"This lack of air service could damage our other industries such as oil and gas, mining, seafood, and tourism," the congressional delegation said in the letter.

The Trump administration is weighing applications from numerous airlines as it considers how to distribute up to $32 billion as soon as this week for passenger and cargo carriers and airport contractors under the CARES Act meant to help the sector cover payroll costs.

Regional airlines, which tend to serve remote communities, are particularly vulnerable to the downturn because they are not publicly traded and cannot access capital markets. They have asked the U.S. Treasury Department to prioritize assistance for them when awarding the grants.

RavnAir - which has a partnership with Alaska Airlines and interline agreements with American Airlines Group Inc, United Airlines Holdings Inc and Delta Air Lines Inc - said it applied on Friday for federal payroll support but did not know if or when it would be granted.

It cited an "astonishing" decline in bookings and revenue due to the coronavirus in its Chapter 11 filing in Delaware.

Airlines began seeing a dramatic drop in bookings around March 12 when it became clear that coronavirus outbreaks were increasing across the world.

"In the event that government relief, under the CARES Act or otherwise, becomes available, (the company) hope to restart operations with as many of its laid-off employees as required," RavnAir said in the filing.

In a letter posted on Sunday, RavnAir Chief Executive Dave Pflieger said the airline was working to "resume the vital air service you depend on ... that are essential to our communities and the state of Alaska."

Many of RavnAir's customers fly on tickets subsidized by Medicaid, the government program for the poor and disabled, it said.

Top Democrats have urged Mnuchin to move quickly to release the grants without imposing unreasonable conditions.

By David Shepardson and Tracy Rucinski

Stocks mentioned in the article
ChangeLast1st jan.
LETS HOLDINGS GROUP CO., LTD. 0.40% 12.5 End-of-day quote.106.95%
WORLD CO., LTD. -1.91% 1537 End-of-day quote.-42.88%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
12:43aAustralia's central bank holds cash rate at 0.25%
12:35aOil prices rise ahead of OPEC+ meeting on extended output cuts
12:35aSoutheast Asia stocks - Extend rally on economic rebound hopes, Indonesia jumps over 2%
12:30aIndonesia's inflation cools to 20-year low in May, as expected
12:22aVW closes $2.6 billion investment in self-driving startup Argo AI
12:21aCENTRAL BANK OF PHILIPPINES : Overall BOP Position Posts US$448 Million Surplus in March 2020
12:17aNEWS HIGHLIGHTS : Top Financial Services News of the Day
12:17aTransforming Lao PDR from a Land-locked to a Land-linked Economy
12:17aPEPANZ PETROLEUM EXPLORATION AND PRODUCTION ASSO : ETS changes need to be carefully implemented
06/01NEWS HIGHLIGHTS : Top Global Markets News of the Day
Latest news "Economy & Forex"