Cash-strapped Island Air, Hawaii’s second-largest inter-island provider, has introduced it is going to halt all service at 12:01 a.m. Saturday.
Affected pbadengers have been informed to make “alternative arrangements,” nevertheless it’s unclear whether or not they’ll get fast refunds.
In an e-mail to staff, Island Air CEO and President David Uchiyama mentioned that the corporate had “exhausted all options that would have allowed us to continue and we have not been able to solidify any of those options within the timeframe needed.”
“We will need to work through this day with our heads held high knowing that we did all that we could do to provide an affordable alternative to interisland travel for our islands,” he wrote. “Your dedication and loyalty to the service/experience that Island Air provided will not be able to matched.”
In a information launch despatched out greater than an hour after Uchiyama’s e-mail, Island Air mentioned that the corporate was not capable of find a brand new investor or lender that may have allowed it to proceed flight operations.
“Island Air has taken every measure possible to avoid this tremendous hardship to its pbadengers,” Uchiyama mentioned, within the information launch.
Island Air flies about 200 inter-island flights weekly, and employs greater than 400 folks.
Meanwhile, Hawaiian Airlines officers mentioned they’ve been alerted about Island Air’s closure and are making ready to help displaced pbadengers.
The resolution to close down comes lower than a month after the airline introduced it was submitting for Chapter 11 chapter safety.
Island Air mentioned it wanted to file for Chapter 11 after lessors of its planes served them with termination notices.
At the time, Uchiyama mentioned that the airline deliberate to finish chapter reorganization and “emerge as a stronger airline.”
Island Air launched in 1980 beneath the identify Princeville Airways. By 1995, it had expanded routes and brought on a brand new identify: Island Air.
Billionaire Larry Ellison bought the airline 4 years in the past, however in January 2016, he offered a controlling curiosity to Island Air’s present proprietor, PacifiCap.
The airline appeared to begin the 12 months on a lot stronger footing: In January, Island Air introduced it had accepted the supply of the primary of three new plane. A month later, it introduced it was increasing service. And in September, the airline’s fleet improve was full.
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