Peninsula Airways Inc. has laid off 15 pilots and parked three of its turbo prop 19-passenger aircraft to cut costs. Chief executive officer Danny Seybert says PenAir had a huge deficit and trimmed operations back this month in response. Seybert says the company was $6 million over budget. He says parking the aircraft, laying off pilots, increasing
fares 17 percent and cutting service to some destinations will make
up $3 million.

The airline will continue to operate in that mode until spring.

PenAir is Alaska's largest commuter airline. It usually operates as many as 40 aircraft with scheduled service to 36 communities throughout southwest Alaska.