Had Operated From Kenai Municipal Airport For 56 Years

Kenai Aviation Services in Kenai, Alaska has closed after flying from Kenai Municipal Airport (PAEN) for the past 56 years. The company is in the process of selling its aircraft, hangars and equipment.

The Peninsula Clarion reports that Jim Bielefeld, the son of the company's founder Bob Bielefeld, cited a decline in work at oil fields since the global oil prices collapsed in 2014. Oil and gas operators were the primary customers of the air charter service, and Bielefeld decided to close the business while he could still meet his financial obligations.

The city airport commission said that in 2009, Kenai boarded over 3,200 passengers. By 2014, the business had slowed to only 2,577 passengers. Bielefeld said things really slowed down in 2016.

In late 2014, independent oil and gas producer Hilcorp began operating its own flights from Kenai airport rather than using charter services. Many of the operators that had been served by Kenai Aviation consolidated under the Hilcorp umbrella.

Bielefeld said that he laid off two of his four pilots in the spring of 2015, and a third later that year.

The closure leaves North Air as the only remaining air taxi operation at Kenai Municipal Airport. North Air does some charter work for tourists in the summer, but relies on the oil and gas sector for income the remainder of the year. Owner Brian Banarek said his company is "in survival mode hoping things turn around."

FMI: www.kenaiaviation.com