Hawaii Island Air Files for Chapter 11 Bankruptcy Protection

Hawaii Island Air (Island Air) has filed for Chapter 11 bankruptcy protection in an effort to continue normal operations while navigating through legal challenges recently presented by the lessors of its aircraft.

On 12 October 2017, Elix Aviation Capital Limited, the lessors of Island Air's aircraft, served them with notices of termination of the leases and demands to surrender its airplanes.

Island Air's fleet is currently made up entirely of Q400s. The airline retired its last remaining ATR72 last month and now flies five Q400s. Island Air acquired its first Q400 at the end of December 2016.

During the reorganization process, Island Air says it expects to fly its scheduled routes as normal and honor all previously purchased tickets and confirmed reservations.

In addition, the airline says that there will be no changes to the Island Miles frequent flyer and other customer service programs, including Kupuna & Keiki Saver Fare, Island Biz corporate travel program, and military and group travel programs. 

“Island Air will continue to hold our customers and employees, as well as our invaluable vendors, as our main priorities during this reorganization process,” said David Uchiyama, Island Air president and CEO. “Once we have completed the reorganization process, Island Air expects to emerge as a stronger airline with a solid financial structure that will allow us to continue to meet the demands of Hawai‘i’s dynamic interisland market, while positioning us for future growth and expansion.”

Island Air currently offers approximately 200 flights each week between O‘ahu, Maui, Kaua‘i and Hawai‘i Island, and employs more than 400 people throughout the State of Hawai‘i.

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