Ravn Alaska has just cut 130 jobs, about one-quarter of its workforce. The Anchorage-based regional airlines that flies between Anchorage and western Alaska towns and cities announced the layoffs to workers Friday.
The airline flies Beechcraft and DeHavilland Dash 8s. Late last year, Ravn stopped serving two of its 12 destinations — Kenai and Aniak.
The airlines had declared bankruptcy in 2020, sold off some of its aircraft, and reorganized. Its parent company is FLOAT Alaska.
Ravn is suffering from a labor shortage, competition, and inflation, it reported. But in 2022, its pilots joined a union — Airline Pilots Association. Two years later, their company is evidently struggling to stay alive.
“In late 2022, the pilots’ Negotiating Committee began preparing for negotiations and surveyed the pilot group with the goal of securing a first collective bargaining agreement. Bargaining began in early 2023 and is ongoing,” reported the pilots union.
Ravn’s CEO is Rob McKinney, also CEO of what launched as Northern Pacific Airways last summer and then changed its named last year to New Pacific Airlines. That company has also struggled. First it planned to fly to Asia through Alaska. Then it inaugurated its service from Ontario, Calif. to Las Vegas, Nevada. It appears to be operating now to Nashville, Tenn. and Reno, Nevada airports from Ontario.
Must Read Alaska sources say Ravn raised pay by about 30% in the fall of 2022 to remain competitive. But the market has been strong for pilots, that a regional airline operating turboprops is not competitive in the labor market, although turboprops used to be a stepping stone for jets. Now, it is an unnecessary diversion for the careers of many pilots.
“Apart from being home every night Ravn has nothing to attract new pilots or retain the ones it had,” a pilot said. “If (when) they cease operations, I seriously doubt that they will be replaced by a similar carrier. The Operational Overhead for a Part 121 carrier in a very seasonal market like ours makes it almost impossible to be profitable.”
Some believe that the future for aviation in Alaska is going to be newer, faster single and twin-engine turboprop aircraft like the Pilates PC-12, Cessna 408, and maybe some legacy Beech 1900’s. Ryan Air, Bering Air, ACE, and Kenai Aviation could see some tremendous market growth if they choose, sources said.
