Hawaii Island Air, Inc. (Island Air) announced has filed for Chapter 11 bankruptcy protection in an effort to continue normal operations while navigating through legal challenges recently presented by the lessors of its aircraft.
According to officials, the bankruptcy filing was caused by threats of legal action to ground the aircraft and strand hundreds of passengers. The filing prevents the threatened action and allows Island Air to continue interisland service for its customers.
During the reorganization process, Island Air expects to fly its scheduled routes as normal and honour all previously purchased tickets and confirmed reservations.
In addition, there will be no changes to the Island Miles frequent flyer and other customer service programs, including Kupuna & Keiki Saver Fare, Island Biz corporate travel program, and military and group travel programs.
“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 Island Air president David Uchiyama. “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 Hawai‘i’s dynamic interisland market, while positioning us for future growth and expansion.”