ANCHORAGE (AP) -- Reeve Aleutian Airways Inc. has staved off bankruptcy, at least for now, company executives announced Friday.
The airline's bank, pilots and other creditors provided some financial relief, and that kept the company out of bankruptcy court, president Dick Reeve said Friday.
''This cooperation from our creditors will allow us to work out our debts without filing Chapter 11 (bankruptcy),'' he said in a statement.
The carrier suspended all regularly scheduled flights and laid off 250 workers on Tuesday. Reeve plans to continue charter and contract flights with a reduced work force, the company said. The financial situation remains fragile, company officials said.
Reeve also announced Friday that the company would be able to pay its laid-off workers their final paychecks.
The state Department of Labor said it was planning a job fair for the Reeve workers Dec. 12 and 13 at Ted Stevens Anchorage International Airport. And the department said it has already started processing unemployment claims.
Reeve Airways began operations in 1932 in Valdez, when Bob Reeve began flying gold miners and supplies into remote areas. It's one of many smaller Alaska carriers that have run into financial problems in recent years.
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