US-based Hawaii Island Air has filed for Chapter 11 bankruptcy protection to continue operations amid legal challenges posed by the lessors of its aircraft fleet.
Filed at the US Bankruptcy Court, the protection follows after Island Air received termination notices of the existing leases from its lessors, who also demanded to surrender aircraft during a recent leases negation process.
The protection will help it to prevent the legal action that threatens to ground its aircraft and strand hundreds of passengers.
The airline intends to continue its normal operations and is also planning not to make any changes to its Island Miles frequent flyer and other customer service programmes.
The filing is also expected to allow Island Air to continue to offer employment to its current workforce of more than 400 people and ensure revenue.
Island Air president and CEO David Uchiyama said: “Island Air will continue to hold our customers and employees, as well as our invaluable vendors, as our main priorities during this reorganisation process.
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By GlobalData“Once we have completed the reorganisation 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 interisland market while positioning us for future growth and expansion.”
Island Air was established in 1980 as Princeville Airways to serve the Islands of Hawaii. In 1992, it was renamed Island Air, which currently offers roughly 200 flights each week.
