Happy Thanksgiving? New Pacific Airlines shuts down leaving employees jobless and stranded
November 27, 2025
Finally, the management of New Pacific Airlines has pulled the plug on the loss-making venture, but the timing could not have been worse.
As millions of Americans sit down to their turkey dinners with family, New Pacific’s former employees are left wondering where their next paycheque is coming from.
In an internal memo sent to Aerospace Global News, CEO Ton Hsieh told staff it is “with a heavy heart” that he announces the closure of the operation.
“Unfortunately, we are unable to continue to fund the losses in our business,” Hsieh continues. “I’m extremely proud of all of you and everything we have accomplished as New Pacific / Ravn Alaska.”
Ravn Alaska was rescued out of bankruptcy in 2020 by FLOAT Shuttle, a commuter airline based in California. From the ashes of Ravn’s Part 121 airlines – Corvus Airlines and PenAir – Northern Pacific was formed.
But by 2023, Ravn was in trouble again, laying off staff and citing lingering damage from the pandemic years. Over the next 18 months, the airline gradually wound down routes and, in August, Ravn Alaska operated its last flight.
In public dealings, the airline never referred to the closure as a closure. In statements, it said simply that the operations had been ‘folded into’ New Pacific. For remote Alaska communities, Ravn had been a lifeline and a staple of the aviation scene for three-quarters of a century. Its demise left a hole in many hearts.
New Pacific’s closure won’t be particularly widely felt, save for a few sports teams it had moderate success in flying around. But for the dozens of employees who worked at the airline, it’s a bitter pill to swallow right on Thanksgiving.
A deal with BeOnd raised hopes for New Pacific Airlines
New Pacific Airlines has perhaps been one of the most unlucky startups in aviation history. Launching in the pandemic was never a great idea, and their end goal of flying ageing Boeing 757s between the lower 48 and Asia, with stops in Anchorage, raised a questioning eyebrow or two.
But NPA never got to see if their whacky idea would have worked, thanks to the outbreak of war in Ukraine and the subsequent closure of Russian airspace. This made the route impossible with the 757 and forced the airline to switch its strategy.
In July 2023, it launched its first scheduled flights, hopping between Las Vegas and Ontario, CA. Later in the year, it added Reno and Nashville. But by March 2024, it had withdrawn from scheduled services altogether. Since then, it’s been focused on charter operations, with an all-VIP configuration of 78 seats.
Just two weeks ago, hopes of something good for New Pacific were on the horizon when Dubai-based luxury airline BeOnd announced it would be partnering with NPA for a US operation. Now, that dream is over. BeOnd told AGN in a statement:
“We are sympathetic for New Pacific Airlines and its employees. This development does not affect our plan to establish beOnd America as a separate entity and be operational in the second half of 2026 with the appropriate successor in interest and AOC holder.”
New Pacific Airlines: Bad luck or bad management?
While NPA has seen its fair share of misfortune, there’s more than just its business plan that raises red flags about the state of its management.
Originally launched as Northern Pacific Airways, the company had to undertake a costly rebranding in 2023 when it became apparent it did not own the trademark for its name. BNSF, the railway company that inherited the trademarks of Northern Pacific Railway Company, challenged the airline in court, and eventually won, forcing the airline to become New Pacific Airlines.
Then there was the splashy lounge in Anchorage – the Navigators Club, complete with IMAX cinema. Built and presented to the media in late 2022, this $6 million facility was unveiled before the airline had operated a single flight.
Throughout its short lifespan, NPA has flip-flopped between business models, undertaking expensive cabin changes and footing the bill to keep its ageing 757s airworthy. The company doesn’t disclose its accounts, but one can only imagine how it was haemorrhaging money.
Bankrolling the venture was FLOAT chairperson Josh Jones. A successful early Bitcoin miner and long-time technology investor, Jones brought enthusiasm, capital and a start-up mindset to the project. However, aviation is a complex, capital-intensive industry with steep regulatory, operational and commercial learning curves.
Jones, together with CEO Tom Hsieh — whose background spans IT, telecoms and community development — faced a formidable challenge in attempting to build and scale two airlines simultaneously in one of the most demanding operating environments in North America.
For Alaskans, the collapse of Ravn under FLOAT’s stewardship is viewed not as an unfortunate business outcome but as a profound loss of critical infrastructure. Ravn’s loss exposes the risks of placing a critical regional carrier under owners still learning the realities of commercial aviation.
As for NPA, the airline that promised a 757 renaissance has disappeared before proving whether its audacious model could fly.
