ANCHORAGE (AP) -- Peninsula Airways Inc. said Tuesday it is ceasing operations in Kodiak.
PenAir employed 41 people in Kodiak and offered inter-island service to 18 communities.
The company halted operations to six village Tuesday, but will continue serving another 12 villages through an ''essential air service'' contract at least until April 1. PenAir officials say they won't end service to those communities until another carrier can take over those routes.
Kodiak operations have not been profitable for some time said, Richard Harding, vice president of operations.
PenAir workers are being offered positions at other PenAir stations.
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