FLOAT Alaska LLC, the parent of New Pacific Airlines, sought Chapter 11 bankruptcy protection in Delaware on Monday, reporting roughly $65.7 million in debt and conceding that its regional Alaskan flight network became financially untenable in the turbulent years following the COVID-19 pandemic.
In its opening court filings, the company pointed to a perfect storm of global pressures — from Russia’s invasion of Ukraine to a sharp downturn in the cryptocurrency market — that strained liquidity and ultimately left the airline unable to keep up with day-to-day obligations.
From Pandemic Gamble to Financial Freefall
President and CEO Thomas Hsieh said in a first-day declaration that FLOAT acquired the regional air operations of Ravn Air Group after Ravn collapsed into bankruptcy in early 2020. The goal was ambitious: rebuild critical Alaskan routes while eventually expanding from Alaska and the U.S. West Coast into Asian markets. That expansion, Hsieh said, never materialized.
“The debtors are presently in default with respect to a number of obligations,” the filing states, warning that creditors had already begun lawsuits, collection efforts and lien actions. Bankruptcy, the company said, was the only way to halt what it described as a “race to the courthouse” and avoid a piecemeal liquidation.
