Kenai Aviation Halts Operations Due to Financial Difficulties

Kenai Aviation has announced the suspension of all flight operations, citing financial difficulties. The company revealed its insolvency on social media, attributing its troubles to mounting debt from the pandemic.

Background on Kenai Aviation

Since 2022, Kenai Aviation operated more than a dozen daily flights between Anchorage and the Kenai Peninsula, including key destinations such as Kenai, Homer, and Seward. The airline was one of only three providers at the Kenai Municipal Airport, alongside Grant Aviation and Aleutian Airways. This came after Ravn Air ceased its operations in the area.

Ownership and Financial Challenges

Joel and Jacob Caldwell acquired Kenai Aviation in 2018. On Facebook, Joel Caldwell expressed his devastation over the situation, stating the need for capital and partners to keep the airline afloat. He emphasized the urgency of finding an investor.

Service Impact and Routes

Kenai Aviation had been serving eight communities in Alaska using a mixed fleet, which included Beechcraft Super King Air and Tecnam Traveller P2012 aircraft. Earlier this year, the U.S. Department of Transportation selected the airline to operate its essential air service route to Seward. This contract was anticipated to last until 2027.

Additionally, the airline was awarded a federal route connecting Anchorage and Unalakleet, which was important due to its status as the only regularly scheduled passenger airline for that route.

Recent Flight Suspensions

In August, Kenai Aviation halted flights when its only King Air aircraft required maintenance. The company noted that the grounded plane further exacerbated its financial issues.

Community Response

Mary Bondurant, the interim airport manager, stated that the City of Kenai intends to work with the remaining airlines. They aim to meet passenger demand while exploring potential new air service operators willing to provide flights to Kenai.

The situation remains fluid as stakeholders evaluate options to restore air service in the region.