propjet was placed into service in 1987 and Metro aircraft remained in the fleet until 2011. In 1988, several bush operators in Dillingham had their certificates revoked by the Federal Aviation Administration (FAA), prompting Peninsula Airways to set up an operation there. A hangar and aircraft were purchased and service to the surrounding communities began. In 1989, Peninsula Airways was contracted by Exxon to support the Exxon Valdez oil spill cleanup. At the same time, a contract was awarded to Peninsula Airways by Alaska Regional Hospital to provide 24-hour medevac service. Peninsula Airways' operations were inspected and approved by Exxon Corporation, U.S. Department of the Interior Office of Aviation Services (OAS), U.S. Department of Defense, and two (FAA) NASIP "white glove" inspections. In 1991, Peninsula Airways began doing business as PenAir and became a code sharing and Mileage Plan partner with Alaska Airlines. PenAir transitioned to FAA Part 121 regulations in 1996, operating under both Part 135 and 121. PenAir was the first regional airline in the United States to make the 10-19 seat required conversion, including a dispatch department. In 1997, PenAir acquired two Saab 340B aircraft and, in 1998, moved its headquarters into a new hangar/office complex in Anchorage, Alaska. The airline expanded its operations outside of Alaska in 2012 after bidding on and being awarded Essential Air Service routes in the Northeastern United States. It established a hub at Boston's Logan International Airport and started operating service to Presque Isle, Maine and Plattsburgh, New York, with additional seasonal service to Bar Harbor, Maine. PenAir's presence in the continental United States greatly expanded in 2016 when the airline was awarded multiple Essential Air Service routes in the Midwestern and Western United States. The airline established its third and fourth hubs at Denver International Airport and Portland International Airport. From Denver, PenAir operated service to Dodge City and Liberal, Kansas and Kearney, North Platte, and Scottsbluff, Nebraska. From Portland, PenAir operated Essential Air Service to Crescent City, California and also began service to Arcata/Eureka and Redding, California and Klamath Falls and North Bend/Coos Bay, Oregon. On August 7, 2017, PenAir filed for Chapter 11 bankruptcy. PenAir made the decision to end all flights out of its Denver and Portland hubs. Routes in California and Oregon that were not funded by Essential Air Service subsidies were terminated within days. The terms of the Essential Air Service contract required that PenAir