Island Air To Cancel Service to Molokai

Island Air has announced that they will be discontinuing service to Molokai after April 1, 2014. The company, which was close to bankruptcy when it was purchased on February 26, 2013 by billionaire Larry Ellison, still appears to have some financial challenges, and they plan to streamline their operation.  David Uchiyama, the vice president of brand management for the Hawaii Tourism Authority, commented, "I understand that Island Air is going through a redevelopment plan of their product.  I thought we were going to see some growth from them going forward, and I'm sure we still will. I have not talked with them recently and will be trying to connect with them so we can get updated on their plans. I'm sure they are building a strategy in the market. They are making substantial investment, most recently in the lounge at the airport. I think there's still more to come. We just need to wait and be patient. There's a big picture why he (Larry Ellison) is making those investments."

Hawaiian Airline has announced that they will be creating a new subsidiary called Ohana by Hawaiian.  Ohana has announced that they will be offering service from Molokai to Oahu starting on March 11.  Ohana will use the 48 seat ATR-42 airplane and will offer three flights per day to Molokai.  However, Ohana will not offer any cargo service, something that Island Air did.

Source: Honolulu Star Advertiser, 2-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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