Hawaii’s Island Air Ceases All Operations

UPDATE: November 11, 2017 - 11:43 AM

United Airlines, for whom Island Air provided codeshare services within Hawaii, is advising passengers holding a ticket for a flight operated by Island Air to contact 1-800-UNITED-1 (1-800-864-8331) for assistance rebooking flights or processing refunds.

United also advises that members of their frequently flyer programme, MileagePlus, may claim mileage credit for previously flown Island Air-operated flights, up to 12 months after the date of their flight, referring them to the requesting mileage credit section of their website for information on obtaining missing mileage credit.

Original Story:

Island Air, an airline operating inter-island flights throughout the Hawaiian Islands, announced that they are ceasing operations at the end of the day today, Friday, November 10, 2017.

The airline filed for Chapter 11 bankruptcy protection on October 16, 2017, after aircraft lessors served them with notices of termination of the leases and demanded that Island Air surrender its leased aircraft. In the weeks that followed, Island Air was unable to raise the necessary funds to continue operating, prompting a complete shutdown of operations.

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“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.”

A notice on the airline’s website reads “Thank you for your support. We are no longer accepting new reservations at Island Air and will cease operations at end of day on November 10, 2017. For inquiries on refunds, please contact your credit card company. We apologize for any inconvience this may have caused.”

In a news release, Island Air advised passengers with reservations beyond Friday to “make alternative arrangements for inter-island transportation.” Those who paid by credit card are being asked to contact their credit card companies for refunds, while those who paid with cash will have to file a claim in bankruptcy court, with no guarantee of obtaining a refund.

Hawaiian Airlines, Island Air’s chief competitor , is offering complimentary coach seats on a first-come, first-served, standby basis for travellers who were previously booked to fly on an Island Air flight between November 11 and November 17, 2017.

"To qualify for standby travel, Island Air travelers must go to Hawaiian’s special customer service desk at the airport on the date of travel shown on their ticket to speak with a customer service agent and provide their Island Air paper or electronic ticket confirmation." read a statement from Hawaiian Airlines

Hawaiian Airlines is also offering a special $71 US one-way fare to Island Air passengers who wish to purchase a confirmed seat during the same period.

Island Air first started service in 1980 as Princeville Airways, flying between Honolulu and the small town of Princeville, Kauai, and grew to offer inter-island flights to most Hawaiian Islands. In 1987, the airline was sold to to Aloha Airlines and rebranded Aloha IslandAir, operating inter-island flights on routes that couldn’t support Aloha’s larger Boeing 737 aircraft.

It was then sold twice more, once again becoming an independent airline, expanding its route network and obtaining more aircraft.

According to FlightGlobal, IslandAir carried 13 per cent of all intra-Hawaii airline seats in the first nine months of 2017, competing directly against Hawaiian Airlines, which carried 80 per cent.

What the future holds for the void left by Island Air’s demise is anyone’s guess, although numerous theories have already popped up, including Qantas or Southwest initiating inter-island flights.

In the meantime, there is still a remote chance that Island Air may fly again, as its cash flow was positive, its business had expanded, and it had funds for normal operations, according to Hawaii News Now. A bankruptcy court hearing is scheduled for November 15.

For full details about protection options being offered by Hawaiian Airlines, visit their website.

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