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Island Air Sale Delayed

Airline Plans To Add Flights

POSTED: 2:45 pm HST March 3, 2004

Aloha Airlines' planned sale of its commuter line Island Air is being delayed at least one month. Both sides had wanted to complete the sale to Gavarnie Holdings LLC by March 1.

However, Island Air President Neil Takekawa told KITV 4 News the sale is taking longer than expected, so Island Air has delayed its plans to hire more staff and put more planes in the sky.

The new owners of Island Air planned to add six new interisland routes for the Big Island and Kauai. Island Air services some of Maui County's smaller airports, including Kapalua and Kaanapali on Maui, Hoolehua on Molokai, and Lanai City on Lanai.

In the meantime, Aloha Airlines' pilots' union has filed a grievance against Aloha, saying any code-sharing with Island Air would break a union agreement by allowing lower-paid Island Air pilots to serve the same airports as Aloha.

Aloha Airlines refused to comment on the grievance.

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