Ravn Air says its CARES Act loan rejected due to formula

By
Suzanne Downing
-
8

Is Chapter 7 bankruptcy next for Ravn Air?

The regional carrier that filed for Chapter 11 reorganization earlier this month messaged some bad company news to social media today: “Our CARES loan application will NOT be possible due to the ASM (Available Seat Miles) formula — the total number of airline seats multiplied by the total miles flown in one year.”

Ravn was one of the first and most visible business failures to come from the COVID-19 economic fallout. It had served myriad small communities around Alaska until it parked its all of its planes on April 5, as communities began to close down travel due to the highly contagious Wuhan coronavirus.

Ravn to file Chapter 11

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  • Founder and Former Editor

    Suzanne Downing founded Must Read Alaska and served as its editor for many years. Her prolific writing spans nearly every topic meaningful to Alaskans. Before founding Must Read Alaska, she served as editor of the Juneau Empire and as a speechwriter for Governor Sean Parnell.

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