ALASKA AIRLINES

Chrissy Roes

One of southwest Alaska's largest airlines will soon be up for sale.

A federal judge has ordered PenAir be auctioned off this October — more than a year after the company filed for bankruptcy protection.

The carrier is promising residents of the Aleutian and Pribilof Islands that their only connection to Anchorage won't just vanish.

The Seybert family founded Alaska-grown PenAir in 1955, and they still own it today.

The company includes 430 employees, 10 airplanes, and eight routes across Bristol Bay, the Alaska Peninsula, and the Aleutian chain.

Pipa Escalante/KUCB

After filing for bankruptcy protection last summer, PenAir has been ordered to sell off its assets to avoid a shutdown.

A federal judge has scheduled the auction for early October, following an emergency motion by the trustee appointed to oversee the airline's bankruptcy proceedings.

In the motion filed Wednesday, Trustee Gerard McHale argued for the "expedited sale schedule" in light of PenAir's "quickly deteriorating cash position."

Courtesy of Alaska Airlines

Alaska Air Cargo has shut down its Unalaska office.

Starting Nov. 1, Alaska Airlines will no longer haul freight on island flights, which are operated in partnership with PenAir.

“Passenger services remain unaffected," said Jason Berry, managing director for cargo at Alaska. "The difference is we will no longer carry cargo on that airplane, and the main reason is that is it’s a very capacity-constrained flight.”