This story was co-reported with KDLL's Ashlyn O'Hara
Regional airline Kenai Aviation announced Monday that it was ceasing all flight operations. The Kenai-based company said in a Facebook post it was “financially insolvent” after accruing debt during the pandemic, and would stop flying by the end of the day.
Joel Caldwell and his son, Jacob Caldwell, purchased Kenai Aviation in 2018. Neither immediately responded to requests for comment.
The airline serviced eight communities across Alaska with its mixed fleet of Beech Super King Air and Tecnam Traveller P2012 aircraft.
Kenai began flying the Anchorage to Unalakleet route on an unsubsidized Essential Air Service contract this past spring. It was the only regularly-scheduled passenger airline serving the route. But in August, Kenai suspended flights after its only King Air plane was down for maintenance.
The company’s Facebook post said the grounded King Air compounded its financial troubles.
In late August the U.S. Department of Transportation, which oversees the Essential Air Service program, reopened the route for bids from other carriers. Local advocates expected a new airline to be selected in October, but the government shutdown has delayed the decision. With Kenai out of the route, residents will need to travel to Nome to reach Anchorage.
This is a developing story. We will post updates as they come in.
