PenAir may come to Homer

The Homer Airport may see some additional competition in 2018, as Peninsula Air may expand its services to the city.

The company better known as PenAir applied for a 26-month sublease at an annual rate of $38,125, according to a resolution passed at the Homer City Council’s May 29 meeting. The council passed the resolution, which allows the city to negotiate a lease with the company.

“A second air carrier at the Homer Airport provides competition and additional flight times which is good for residents, visitors, and the economic vitality of Homer,” the resolution states.

Founded in 1955, PenAir is currently entered into Chapter 11 Bankruptcy, which allows it to continue operations during a business model restructure, according to the ordinance. That restructuring is slated to be complete in the fall.

“I think it’s great,” said council member Heath Smith during the meeting. “That we can have hope of having PenAir in house and providing some competition and some additional service.”

“This is a really busy town,” Lord added. ” … Seeing more business at the airport and more business in Homer year round, generally, is a really great thing. And so, I’m excited about this.”

PenAir employs more than 500 employees, according to its website, and offers flights to and from Anchorage in Cold Bay, Dillingham, King Salmon, McGrath, Sand Point, St. Paul and St. George, and provides service to Dutch Harbor for Alaska Airlines.

PenAir also provides flights to and from Boston in three East Coast communities.

The city will have to approve a final lease with PenAir by no later than the council’s June 25 meeting.

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