Aleutian Airways ends Kenai service; council pursues Fox Air contract

Aleutian Airways has ended service into Kenai, airport staff told the Airport Commission on May 14.

Airport Manager Mary Bondurant said the airline sent an email notifying the city it was ending Kenai flights. The termination leaves Grant Aviation as the primary carrier serving the airport.

The Kenai City Council has directed administration to pursue a contract with Fox Air to maintain service levels, Council Member Sonnart said at the commission meeting. The council acted at its meeting the previous week.

A citizen complaint has been lodged against Fox Air. The council instructed staff to investigate the allegations before finalizing any contract. Sonnart declined to detail the complaint.

"There has been a citizen complaint lodged against Fox Air, and so we have tasked the administration with moving forward toward a contract with the caveat that some questions are asked and these allegations are asked about and laid to rest one way or the other," Sonnart said.

Aleutian Airways launched Kenai-Anchorage service in June 2025 with two daily roundtrip flights using Saab 2000 aircraft. The airline marketed the route as a 35-minute flight between the two cities. The service came less than two years after Ravn Alaska ended Kenai service.

Sonnart said Aleutian is doing limited flights this summer because of fuel prices. The airline's absence has reduced total passenger counts at the airport, according to commission materials.

Grant Aviation continued Kenai-area service after Ravn Alaska ended operations and through Aleutian's entry into the market.

The commission also approved special use permits for Rock River Outdoors and Crowley Fuels at the May 14 meeting. Bondurant said the Crowley permit covers apron space where planes park while fueling north of the terminal.

The airport is preparing for a three-week runway closure starting May 14 at 11 p.m. Contractors will mill and remove existing asphalt from the main runway while operations shift to a temporary runway. The Federal Aviation Administration must approve two documents before the tower can issue full landing and departure clearances on the temporary runway. The first document authorizes takeoffs and departures under visual flight rules during daylight hours. The second waiver enables instrument approaches under instrument flight conditions.

Bondurant said the airport expects to host 60 people from Glenfarn on May 18 for Alaska Gas Line development work. The United States Marine Corps will visit May 19 to plan a three-week Arctic Edge exercise in spring 2027 that could bring two F-18s and two C-130s to Kenai.

The terminal cafe's last day of operation is May 23. Bondurant said she and staff submitted a request for proposals to City Hall for review, with hopes a new operator will open by July 1.