Island Air filed for Chapter 11 bankruptcy protection
The airline has been serving the islands since 1980.
Hawaii Island Air, Inc., or Island Air, filed for Chapter 11 bankruptcy protection Monday.
The airline filed for bankruptcy protection as it awaits a court battle with the companies it leases its aircraft from.
“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 Hawaii’s dynamic inter-island market, while positioning us for future growth and expansion.”
The company said the decision is in an effort to continue normal operations while navigating through legal challenges recently presented by the lessors of its aircraft.
The airline has been serving the islands since 1980 and offers about 200 flights each week between Oahu, Maui, Kauai and Hawaii Island.
Under bankruptcy protection, the airline will continue to operate as normal and honor all reservations during lease negotiations.