Island Air Ceases Operations

Photo: Island Air has ceased operations. Bombardier


Hawaii’s Island Air operated it last flights on November 11, just days after filing for Chapter 11 bankruptcy protection.  The airline was unable to find a new investor or lender to provide the funding it required to support flight operations and a successful reorganisation of its business.

Island Air claims “aggressive legal attacks” by lessors Wells Fargo Bank Northwest, and Elix 8, hadn’t helped its cause.  The lessors have not responded to this statement.

Judge Robert Faris of the District of Hawaii Bankruptcy Court had denied the lessors’ Motion for Temporary Restraining Order on November 3.  Wells Fargo Bank Northwest, and Elix 8 had been seeking the termination of all leases and the immediate repossession of Island Air’s aircraft.  The airline’s aircraft are now in storage.

“Island Air has taken every measure possible to avoid this tremendous hardship to its passengers,” said David Uchiyama, Island Air President and CEO.  “Island Air appreciates the loyalty and support its customers, management, employees, and vendors have shown the airline, especially during the last few weeks of this bankruptcy process.  Island Air is proud of its 37-year history of service to the State of Hawaii.”

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