Inside Alaska Business
RavnAir Group
Los Angeles–based FLOAT Shuttle plans to purchase RavnAir Alaska and PenAir out of bankruptcy. RavnAir Group received approval for the sale of all twelve lots of assets at its final Bankruptcy Court hearing—including the two Anchorage-based Part 121 passenger air carriers.

“We are extremely excited about today’s outcome,” says Dave Pflieger, Ravn’s president and CEO. “While it is truly unfortunate that we can’t restart our RavnAir Connect Part 135 airline, we are hopeful that the Alaska-based buyers of those assets will hire many of our former employees; and we are thrilled to hear that the FLOAT shuttle team intends to rehire as many of our remaining employees as possible and quickly resume flights to the many vital communities Ravn serves throughout our great state.”

RavnAir announced plans to file for bankruptcy after seeing a 90 percent drop in bookings and revenue due to COVID-19.
flyravn.com

Chugach | ML&P
The Regulatory Commission of Alaska (RCA) has conditionally approved the acquisition of Municipal Light & Power (ML&P) by Chugach Electric Association. The 152-page order was issued in late May. In April of 2018, Anchorage voters approved the sale of ML&P to Chugach by more than 65 percent. Following the vote, Chugach filed for approval of the transaction on April 1, 2019. After several weeks of hearings that started in August, the parties reached a settlement that included a purchase price of nearly $973 million. Assuming the RCA’s conditions are acceptable, the Municipality of Anchorage and Chugach will move forward with the transaction, with a closing date later this year. The combination of the two utilities is expected to lead to lower long-term rates for all utility ratepayers with an estimated ratepayer savings of more than $200 million over the next fifteen years.
chugachelectric.com
BSNC | Northwest Contracting
Bering Straits Native Corporation (BSNC) has acquired Northwest Contracting, an Alaska-based industry leader in pavement marking and grooving. Northwest Contracting was founded in 2008 by co-owners Charlie McAllen and Chris Hubble. “BSNC has carefully evaluated the opportunities this acquisition offers. Northwest Contracting will complement the growing Bering Straits portfolio of companies,” says BSNC President and CEO Gail Schubert. “We are pleased to announce that Charlie McAllen and Chris Hubble will stay with the company and continue to manage day-to-day business activities.” Northwest Contracting offers BSNC an opportunity to expand into a new market, grow the company through Small Business Administration certification, and extend its geographical reach.
beringstraits.com
Alaska Airlines
Alaska Airlines garnered nearly $1.2 billion in private loans to help secure its financial stability and future during the COVID-19 pandemic, while still balancing the appropriate amount of liquidity. As part of an Enhanced Equipment Trust Certificate offering, Alaska will use sixty-one of its owned aircraft as collateral to back the debt: twenty-six Boeing 737-800s, sixteen Boeing 737-900ERs, and nineteen Embraer 175s. The aircraft will remain encumbered until the debt is repaid: Series A ($966 million) will be repaid by August 15, 2027 and Series B ($208 million) will be repaid by August 15, 2025.
alaskaair.com
Brown Jug | Afognak
Afognak Native Corporation purchased Brown Jug—most recently owned by Alcanna Inc., a Canadian company based out of Edmonton, Alberta. “Brown Jug was born and raised in Alaska and remains one of the state’s most well-known brands,” says Greg Hambright, president and CEO of Afognak. “The company has built and maintained a solid reputation by providing quality customer service, great selection, and competitive prices while also leading the industry in responsible retail and ensuring social responsibility and community involvement and engagement.” Brown Jug operates one warehouse and twenty-one stores in Anchorage, Eagle River, Wasilla, and Fairbanks. It is also Alaska’s first and largest retailer of wines, spirits, and beer. Brown Jug employs roughly 220 Alaskans and generates more than $80 million in annual revenue.
brownjugalaska.net | afognak.com