Hawaiian intra-island carrier Island Air has filed for
Chapter 11 bankruptcy protection, a measure designed to allow for the
continuation of normal operations while the carrier fends of legal challenges
from its aircraft lessors.
"During the reorganization process, Island Air expects
to fly its scheduled routes as normal and honor all previously purchased
tickets and confirmed reservations," the carrier said.
There won't be changes to the Island Miles frequent flyer program.
Island Air, Hawaii's second-largest carrier, flies a fleet
of five twin-engine turboprops between Oahu, the Big Island, Maui and Kauai. It
flew 172,000 passengers in the first quarter of 2017, more than double the
number it flew a year earlier.
On Oct. 12, while in the process of negotiating its airplane
leases, Island Air said its lessors served the carrier with notices of termination
and demanded surrender of its planes. The bankruptcy filing fends off that
demand.
In January, Island Air announced that it would convert its
fleet from 5 ATR-72s to 78-seat Bombardier Q400s. The carrier said it had
leased three Q400s from Elix Aviation Capital Limited.
Elix is not listed as a creditor in the bankruptcy case.
Island Air has lost money for 17 consecutive quarters,
according to the Associated Press.