According to a report released by the U.S. Department of Transportation, Island Air has posted a $3.3 million loss during the first quarter of 2014. Island Air is a private company owned by billionaire Larry Ellison, but is still required to report its financial data to the Department of Transportation. Due to the deep pockets of Ellison, experts in the field aren't especially worried and simply feel that Island Air needs some time to turn around its operations. Peter Forman, an aviation historian, stated, "Island Air is working very hard on improving the quality of its product, and they've made tremendous headway there, but there is a delay between the time you improve your product and the response by the traveling public. I would expect their revenue would be improving in the future, which will affect their bottom line."
Island Air currently operates more than 250 weekly flights between Oahu, Maui, Kauai and Lanai. The airlines is currently phasing out its older 37-seat Bombardier planes for newer 64-seat ATR-72 turboprop planes. Forman added, "The solution (for Island Air becoming profitable) will be on the revenue side and whether it attracts enough passengers to fill those seats better in the future. I remain optimistic about the long-term prospects for Island Air. The disappearance of go! (airline) will help Island Air's numbers in the future."
Source: Honolulu Star Advertiser, 6-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
