Airline plans to discontinue subsidized service to Dodge City, Liberal – The Hutchinson News

John Green

An airline providing subsidized service to Dodge City and Liberal has filed for bankruptcy and notified local and federal officials it will be discontinuing its Kansas services.

Recognizing the airline, Alaska-based PenAir, has struggled almost since it began providing service to the area about 11 months ago, however, Liberal Airport Manager Debbie Giskie sees the change as an opportunity.

I think it was struggling and had some difficulties in the past, Giskie said. This is an opportunity to search for another carrier and try to build up the service.

PenAir filed for Chapter 11 reorganization with the state of Alaska. The filing will not affect scheduled air service operations in Alaska or Boston, the airline reported in a news release.

However, PenAirs Portland, Oregon and Denver, Colorado hubs will begin the process of closing scheduled service over the next 90 days, the release stated.

The Denver hub serves Dodge City and Liberal with twice-daily weekday and once-daily weekend service on a 30-seat turboprop plane.

Through April, Dodge had about 2,800 boardings and Liberal nearly 1,950, according to a previous report in The News about federal Essential Air Service (EAS) subsidies.

The steps we are taking today will allow PenAir to emerge as a stronger airline, while continuing our focus on safe operations, PenAir CEO and Chairman Danny Seybert stated in the news release. We will be working with a restructuring officer to present a reorganization plan that will allow the management team to focus on our employees, safe operations, retiring debt and taking care of our customers.

Because it received EAS subsidies, the airline must get approval from the federal Department of Transportation before it can discontinue the route.

That gives federal officials time to advertise for a new provider, Giskie said.

Besides Dodge City and Liberal, the company also plans to discontinue EAS routes operating between Denver and North Platt, Kearney and Scottsbluff, Nebraska.

Once approved, this transition usually takes 30 to 90 days until a new carrier can be secured in the market, the release noted.

PenAir, founded in 1955 by Orin Seybert in Pilot Point, Alaska, serves eight destinations within Alaska and three routes in the Boston area, including flights to Presque Isle, Maine and Plattsburgh, New York. PenAir has 700 employees.

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Airline plans to discontinue subsidized service to Dodge City, Liberal - The Hutchinson News