Island Air Files for Chapter 11 Bankruptcy Protection

By Anna Breuer on 16 October 2017
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Maui, Hawaii

Hawaii Island Air, which operates as Island Air, an inter-island carrier in Hawaii, announced Monday it is filing for reorganization under the state’s bankruptcy laws.

The move was necessitated after the lessors of its aircraft served the airline with notices of termination and moved to repossess the equipment. Had the lessors been able to carry out their plan, it would have grounded the carrier’s planes and stranded hundreds of passengers.

The filing will allow the airline to continue inter-island service for the immediate future.

“Prioritizing its customers, employees and the communities it serves, Island Air made the difficult decision to file for bankruptcy protection,” the carrier said in a statement.

Island Air is based in Honolulu and operates code-share flights for United Airlines. It operated code-share flights for Hawaiian Airlines until 2012, when it began to offer flights under its own brand in competition with Hawaiian.

(Photo: Accura Media Group)

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