DOT Seeks Alaska Essential Air Service Bids After Ravn Shutdown

The U.S. Transportation Department (DOT) is seeking new bids to provide essential air service in Alaska after the shutdown of Ravn Alaska cut off key links to Anchorage.

The order applies to St. Paul Island and Unalakleet, two remote communities that depended on Ravn for scheduled air routes. Carriers have until Sept. 2 to file proposals, with new contracts to take effect once a replacement can begin service, the department said.

The move comes after Ravn Alaska ceased operations earlier this month, ending 77 years of service. The carrier was once the largest regional airline in Alaska, but its network had shrunk to just six destinations by early 2025 as its DHC Dash 8 aircraft were sold or withdrawn from service.

“We appreciate the years of service we were able to provide to Alaska communities,” the company said in a short statement following its closure. “While we are no longer operating flights in Alaska, we're grateful for the trust you placed in us during our time serving the region.”

Ravn had provided 3X-weekly subsidized roundtrips between St. Paul and Anchorage under a $2.68 million annual contract, as well as 3X-weekly unsubsidized roundtrips between Unalakleet and Anchorage. Both routes became subject to DOT intervention after Ravn filed termination notices in 2024.

Kenai Aviation was tapped to provide interim service at Unalakleet, but concerns were raised about reliability and equipment changes. The DOT also rejected Kenai’s proposal for St. Paul, which relied on nine-seat Beechcraft King Airs instead of the 25 to 30-seat Dash 8s historically used.

“The department encourages air carriers to work with the community as they prepare their proposals to craft a service proposal that meets the community’s needs with subsidy requirements that remain competitive,” the DOT said. “As always, the department will fully consider the community’s and state’s views before making an air carrier decision.”

Prior to suspending commercial operations, Ravn offered five routes from Ted Stevens Anchorage International Airport, flying to Homer, St. Mary's, St. Paul Island, Unalakleet and Valdez, according to OAG Schedules Analyser data.

The airline had filed for Chapter 11 bankruptcy in April 2020 at the onset of the pandemic, but parts of the business were later acquired by FLOAT Alaska, which also owns New Pacific Airlines.