Kenai Aviation announced on Monday that it will cease all flight operations due to financial difficulties, declaring itself “financially insolvent” on a Facebook post. The company attributed its financial woes to accumulating debt during the pandemic, prompting flight operations to halt by the close of the day.
Since 2022, Kenai Aviation has provided over a dozen daily flights connecting Anchorage to various locations within the Kenai Peninsula, including Kenai, Homer, and Seward. This announcement means that, following the airline’s departure, only Grant Aviation and Aleutian Airways will remain as service providers at the Kenai Municipal Airport, especially after Ravn Airlines withdrew from the region.
Joel Caldwell, who, along with his brother Jacob Caldwell, acquired Kenai Aviation in 2018, expressed his devastation on social media, stating, “We need capital, we need partners, we need a lifeline. That investor is out there, we just need to find them.”
Kenai Aviation had a vital role in serving eight communities across Alaska, operating a mixed fleet that included Beechcraft Super King Air and Tecnam Traveller P2012 aircraft. Earlier this year, the federal Department of Transportation selected the airline to operate its essential air service route to Seward, with a contract expected to last through 2027. Additionally, the airline had secured another federal route between Anchorage and Unalakleet. However, flight operations were suspended in August as the airline’s sole King Air aircraft was under maintenance, further exacerbating financial strains.
To address the gaps left by Kenai Aviation’s exit, Interim Airport Manager Mary Bondurant stated that the City of Kenai will work closely with the remaining airlines to fulfill passenger needs and is also open to exploring interest from other airlines that may wish to provide flights to Kenai.
The cessation of Kenai Aviation’s operations highlights the ongoing challenges faced by regional airlines, especially in adapting to the economic pressures brought on by the pandemic. Nonetheless, there is hope for potential partnerships and new airline interest in the area, ensuring continued access to air travel for the communities affected.