Island Air CEO Has Lofty Goals

Paul Casey, the Chief Executive Officer for Island Air, has some lofty goals for his company, but as the former CEO of the much larger Hawaiian Airlines, Casey feels confident that he will be able to reach them.  Casey stated that over the last year since taking over the inter-island airline, he has been working to change the culture and increase the pride that his employees have for the job.  Casey added, "By Hawaiian Airlines standards we are very small, but with size comes the personal touch and flexibility and we are privately owned."

Island Airline is owned by billionaire Larry Ellison, who, according to Forbes magazine, is the fifth-richest man in the world with a net worth of $48 billion.  Ellison also owns 98 percent of the island of Lanai, including the two Four Seasons properties there.  On March 31, 2014, Island Air announced that they will be purchasing two brand new Q400 NextGen turboprop aircraft, and have the option of purchasing four additional planes depending on demand.

President and CEO of the Hawaii Tourism Authority, Mike McCartney, stated, "Island Air has been doing some exciting things under Paul Casey's leadership.  The most important thing is they have the capacity to invest in new aircraft, which will help them stay competitive and grow as an interisland airline. With the loss of go!, Island Air's presence has become even more important to the interisland travel market."

Vice President of Brand Management for the Hawaii Tourism Authority, David Uchiyama, added, "Based on the direction and leadership that I see with Island Air, as well as the new ownership, the quality of the aircraft that they're investing in and their efforts to improve service levels, it looks very promising. Paul is very experienced in this market having been the leader of Hawaiian Airlines for so long. So I'm very confident that he is going to provide the direction needed to make Island Air very competitive in the market."

Source: Honolulu Star Advertiser, 5-4-2014, www.staradvertiser.com
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Larry Ellison Purchases Another Two Dozen Homes and Properties on Lanai

On June 2012, billionaire Larry Ellison purchased nearly 98 percent of the island of Lanai for approximately $300 million.  Since then, Ellison has been buying even more real estate on Lanai.  According to recent property records, two of Ellison's companies have purchase another two dozen homes and lots for a total of $40 million. Many of these additional purchases have been luxury vacation homes and condominiums, though some of them have been old plantation houses.  Some speculate that Ellison decided to purchase the additional properties as housing for the consultants and employees that he has been bringing in to improve and diversify the island's economy.  It is believed that Ellison may decide to build a third resort on the island, as well as a second airport runway, commercial agriculture, a tennis academy, a film studio and a research institute.  Still, Ellison has been rather selective of which properties he is buying on the island.  Over the last two years, Ellison has purchased only approximately 20 percent of the available listings.

Source: Honolulu Star Advertiser, 2-23-2014, www.staradvertiser.com
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'Ohana by Hawaiian Airlines to Start Service in March 2014

Hawaiian Airlines has announced that their new subsidiary, 'Ohana Airlines, will begin service in March 2014 to the islands of Molokai and Lanai from Honolulu Airport.  Initially, 'Ohana will offer three flights to Molokai per day starting on March 11, and will offer two flights per day to Lanai starting on March 18.  They will be using a new turboprop ATR-42 aircraft, which will be able to accommodate 48 passengers.  'Ohana Airlines will create over 100 new jobs in Hawaii.

Source: Honolulu Star Advertiser, 2-11-2014, www.staradvertiser.com
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Hawaiian Airlines to Create 'Ohana Airlines for Smaller Airports

Hawaiian Airlines has announced that they will be creating 'Ohana by Hawaiian, a subsidiary that will competed directly with Island Air and Mokulele Airlines with flights to the smaller airports on Molokai and Lanai.  'Ohana by Hawaiian will be operated by Empire Airlines, an Idaho-based company, and has just welcomed in its first 48 passenger ATR-42 turboprop airplane. Crews have begun their training and will have to demonstrate to the FAA that they are ready for daily operations before they are given official clearance to start service.  'Ohana initially plans to have a total of three ATR-42 planes and will provide daily service been Honolulu, Molokai and Lanai.

Source: Honolulu Star Advertiser, 1-14-2014, www.staradvertiser.com
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Interisland Undersea Transmission Cable Being Reviewed

Developer Castle & Cooke had previously announced plans to create wind energy projects on the island of Lanai and send the electricity generated to the island of Oahu and the Hawaiian Electric Company through the use of an undersea transmission cable.  However, the state of Hawaii's Public Utilities Commission has stated that they are going to open an investigation to see if this interisland cable is in the public's best interest.  Chairman for the PUC, Hermina Morita, stated, "The orders reflect the need for foundational information for a strategic systems approach as we consider new renewable energy generation projects and other major infrastructure investment to bring maximum value to Hawaii's ratepayers for the long term."  The Hawaiian Electric Company responded by stating, "We appreciate the additional guidance from the Public Utilities Commission. This will help us move forward to seek more renewable energy that can provide the greatest value to our customers."

Robin Kaye, the spokesman for the Friends of Lana'i group who opposes the development of a wind energy project on the island, stated, "This takes the state's energy policy out of the hands of a private developer and shifts it back to the community and the PUC.  The community has advocated for years that we don't want this."

Source: Honolulu Star Advertiser, 7-13-2013, www.staradvertiser.com
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Larry Ellison Considering The Purchase of go! Airlines

Larry Ellison, who purchased 97 percent of the island of Lanai in June 2012 and who purchased Island Air in February 2013, has announced that he is in discussions with Mesa Air Group, the parent company of go! airline.  Island Air's chief executive officer, Paul Casey, stated, “We are committed to building a strong regional airline and part of that process is exploring all options including discussions with Mesa Air,”  Mesa Air Group created go! airline in 2006.  Mesa filed for Chapter 11 bankruptcy in 2010 and emerged out of it in 2011.

Peter Forman, a Hawaii aviation historian, commented that Larry Ellison is "making a play to become the second serious interisland competitor.  It's a major move.”  Forman noted that if Island Air does combine with go! Airline, neighbor island flights should become more competitive due to increased service.

Source: Honolulu Star Advertiser, 6-21-2013, www.staradvertiser.com
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Electrical Rates Increase Slightly to Fund Wind Energy Research

Oahu residents will have to pay an average of 13 cents more per month for the next three years to pay for a study on wind energy that was conducted in 2009 and 2010 by the Hawaiian Electric Company. The research project, called “Big Wind”, was on how to generate wind energy on the neighbor islands and then send it to Oahu via undersea cables. According to the Hawaiian Electric Company, the Public Utilities Commission has given permission last week to collect $4.4 million from rate payers. HECO stated, “These are the core planning studies that were necessary to assess both the technical and economic feasibility of the Big Wind Projects and requirements for the Oahu transmission lines and facilities needed to interconnect undersea cables delivering power from the Big Wind Projects to Oahu.”

However many question if the research was worth it, as nothing has materialized from the studies as of yet. A wind farm project on Molokai was dropped after two developers were unable to win support from the local community. Another wind project on Lanai is still up in the air with developer Castle and Cooke retaining the rights to develop a wind farm at a later date.

Source: Honolulu Star Advertiser, 5-28-2013, www.staradvertiser.com
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Inter-island Shipping Down 3.9 Percent in First Quarter of 2013

According to a report released by Young Brothers Ltd., the main inter-island shipping company in the state of Hawaii, cargo shipments between Honolulu and the six neighbor island ports decreased by 3.9 percent during the first quarter of 2013 as compared to the same period a year ago. Shipments decreased by 12.3 percent to Kawaihae Harbor on the Big Island of Hawaii, by 6 percent at Hilo Harbor also on the Big Island, and by 5.8 percent on Kahului Harbor on Maui. Increases were seen at Nawiliwili Harbor on Kauai (3.1 percent), Kaunakakai Harbor on Molokai (2.2 percent) and Kaumalapau Harbor on Lanai at 28.5 percent. President of Young Brothers, Glenn Hong stated, “It’s disappointing to start the year with a decline. Nevertheless, it’s a continuation of the volatility we’ve experienced in quarterly comparisons of intrastate cargo volumes over the last few years. The trend has been sideways — a slight up quarter followed by a dip. We believe that some local businesses, particularly those on the neighbor islands, are still being very cautious.”

Source: Honolulu Star Advertiser, 5-24-2013, www.staradvertiser.com
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Energy Expert Hired to Make Lanai Sustainable

Director of Strategic Energy Initiatives at the University of California, San Diego, Byron Washom, has been hired by Lanai Resorts LLC to help to make Lanai completely sustainable in terms of renewable energy and ocean water desalination. Lanai Resorts, which is owned in its entirety by billionaire Larry Ellison, issued a statement that Washom will, “Lead a new initiative to transform the Hawaiian island of Lanai into a model for sustainable energy.” Washom will oversee a development to make all of Lanai’s energy consumption renewable and help to develop a desalination plan that will help to augment the island’s fresh water supply.

When billion Larry Ellison purchased 97 percent of Lanai in June 2012, one of the plans that was announced was to ensure a sustainable future for its residents. Ellison also purchased Island Air in February 2013 to help with transportation to and from Lanai.

Source: Honolulu Star Advertiser, 5-18-2013, www.staradvertiser.com
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Hawaii Tourism – Island Air to Stop Flights to Kapalua, Maui

Island Air has announced that effective May 31, 2013, they will no longer be offering flights to Kapalua Maui on the west coast of that island and will instead be only flying to the main airport in Kahului.  Island Air’s president, Les Murashige stated, “We regret that we will no longer serve Kapalua.  We are pleased that we can expand service to Kahului with the addition of our new ATR 72 aircraft.”  Murashige explained that Island Air would be replacing their planes from Dash 8 aircraft to the larger ATR 72 which were too large to land at Kapalua Airport.  This announcement will leave Mokulele Airlines as the only schedule carrier to fly in and out of Kapalua.

Source: Honolulu Star Advertiser, 3-26-2013, www.staradvertiser.com
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Island Air Owned By Larry Ellison

Island Air has confirmed that billionaire Larry Ellison has completed a deal to purchase their company. Paul Marinelli, a representative of Ellison, stated, “Make no mistake about it, the airline will be increasing service to all the islands, not just Lanai. It goes without saying that Island Air is critical to the island of Lanai, and that certainly was the impetus for beginning discussion. But as we got into it, what we realized is there’s an incredible market opportunity here for all the islands, and we fully intend to engage that opportunity.”

Island Air currently has approximately 5 percent of the state’s inter-island market. President of Island Air, Les Murashige, stated, “Mr. Ellison has already demonstrated a strong commitment to Hawaii, and we are proud to have an owner with the resources and desire to facilitate our expansion plan. This is a very exciting day for the Island Air ohana as well as the entire state of Hawaii. Mr. Ellison brings resources to build the airline, so we plan to service all the communities of Hawaii, which we feel will benefit both kama­aina and visitors alike.” It was also announced that Murashige will remain as President of Island Air.

Larry Ellison is the CEO and co-founder of Oracle Corporation, and is the third-richest man in the United States. Ellison made headlines in 2012, when he purchase 97 percent of the island of Lanai.

Source: Honolulu Star Advertiser, 2-27-2013, www.staradvertiser.com
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Larry Ellison’s Vision for Lanai

In June 2012, billionaire Larry Ellison, under the name Lanai Resorts LLC, purchased 98 percent of the island of Lanai. In a recent press conference, it was released that Ellison would like to build a new oceanfront hotel, expand the existing Four Seasons Resort at Manele Bay, build a second airport runway, create a desalinization plant which would supply the whole island with fresh water, utilize more solar energy, and create free electric-car charging stations across the island. There are also plans to re-establish commercial farming on the island, create a university research center and create new health care and hospice care facilities for the residents. At this time, however, Lanai Resorts LLC has not given exact specifics on what would be done, nor did they give exact timelines as to when these projects would be started.

For the most part residents of Lanai approved of Ellison’s ideas, but have noted that they do not want Lanai to become too commercialized. President of the Lanaians for Sensible Growth, Butch Gima, commented, “Overall the community is I think excited and optimistic about the potential. There are really no red flags at this point.” Gima added that Lanai Resorts’ management is doing an excellent job engaging the community and asking them for advice and suggestions as to what they would like Ellison to accomplish.

Alan Arakawa, the Mayor of Maui (which includes the island of Lanai), commented, “This is probably the best thing that could have happened to the island,” he said. “The former owner was allowing it to deteriorate. My hat’s off to Larry (Ellison). His intent seems the very best. I see Ellison as trying to find all the things that can enhance Lanai. I don’t think it has to be his way or the highway.”

Source: Honolulu Star Advertiser, 1-26-2013, www.staradvertiser.com
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Larry Ellison to Purchase Island Air

Island Air has announced that the new buyer for the company is going to be none other then billionaire Larry Ellison. Ellison made headlines in 2012 when he purchased 97 percent of the island of Lanai. Island Air is currently the third largest interisland airline and has an approximate 5 percent of the market share. Ellison is the co-founder and CEO of Oracle Corp and is the third-richest person in the United States with an estimated net worth of $41 billion. The exact sales price for the purchase of Island Air has not been disclosed.

Source: Honolulu Star Advertiser, 1-18-2013, www.staradvertiser.com
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Four Seasons on Big Island Receives Top Honors from TripAdvisors

TripAdvisors has named the Four Seasons Resorts Hualalai on the Big Island of Hawaii as the Best Hotel in the United States, the Best Hotel in the World, the Best Luxury Hotel in the United States and the Best Luxury Hotel in the World. The internet travel site, TripAdvisors, stated that they select their top hotels based up millions of traveler’s reviews posted over the past year. Three other Hawaii hotels made the top 25 United States properties. They included the Four Seasons Resort Maui at Wailea (#2 overall), the Four Seasons Resort Lana’i (#6 overall), and the Ko’a Kea Hotel & Resort on Kauai (#19 overall).

Source: Honolulu Star Advertiser, 1-17-2013, www.staradvertiser.com
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Kurt Matsumoto is New Chief Operating Officer of Lanai Resorts LLC

In June 2012, billionaire Larry Ellison purchased 98% of the land on the island of Lanai from the Castle & Cooke Foundation.  Ellison, the CEO for software giant Oracle Corp., has just announced that he will be hiring Lanai native Kurt Matsumoto to be his new Chief Operating Officer for Lanai Resort LLC.  As COO, Matsumoto would manage all of Ellison’s Lanai holdings which would include The Lodge at Koele, the Four Seasons Resort at Manele Bay, two golf courses, several luxury home development, utilities and a plan to establish the island as a grower and exporter of organic produce.

Matsumoto was born on Lanai and was once the vice president of resorts and administration on the island for Castle & Cooke.  He was also the general manager for  Mauna Lani Bay Hotel & Bungalows on the Big Island of Hawaii.  Matsumoto stated, “I never imagined I’d get an opportunity like this.  This job is really important to me. Lanai is my home.  My feeling is (that Ellison) really has the right intent: to take the strengths of the island and use it to an advantage, not just for himself, but for the community, too. This is a really good second chance for Lanai.”

Source: Honolulu Star Advertiser, 11-14-2012, www.staradvertiser.com
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Lanai Real Estate – Larry Ellison Buys 98% of Lanai

Larry Ellison, the third richest man in the United States, has officially completed his purchase of 98% of the island of Lanai from Castle & Cooke Inc.  David Murdock, the chief executive officer of Castle & Cooke stated, “It is very gratifying to me personally to see Lanai now in the hands of Larry Ellison, a very committed individual who will bring his ideas and energy to sustain the beauty and heritage of Lanai.  My time on Lanai, known as the pineapple island, has been enjoyable and inspiring. I have devoted 28 years in shepherding Lanai’s transformation into a world-class tropical paradise.”

Governor Neil Abercrombie commented, “Every indication that I’ve had to this point is that Mr. Ellison and his associates are very anxious to create a good impression based on being responsive to the needs of the people of Lanai and the island itself.  I’m sure that the sale of the island which has been completed today will give us an opportunity to go into a new era.”

Source: Honolulu Star Advertiser, 6-29-2012, www.staradvertiser.com

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Lanai Real Estate – Wind Farm Plans to Remain for Island

A day after it was announced that Larry Ellison would purchase 98 percent interest in the island of Lanai, officials from Castle & Cooke have stated that they will continue to build a 200 megawatt wind energy project.  Previous owner, David Murdock, will retain the rights to his home on Lanai as well as the rights to develop a wind farm on the northwestern corner of the island.  The plan is to then ship the electricity generated to the island of Oahu via an undersea cable.  Opponents of the wind farm have stated that they are very disappointed and had hoped that Larry Ellison would have put a stop to the project once he had made the purchase.

Robin Kaye, spokesperson for Friends of Lanai, which opposes the wind project, said that they was disappointed to hear that plans for it would continue even with a new owner taking over the island.

Source: Honolulu Star Advertiser, 6-21-2012, www.staradvertiser.com
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Island of Lanai May Be Sold By Castle & Cooke Inc.

Officials from Castle & Cooke Inc. met with Hawaii Governor Neil Abercrombie and Maui Mayor Alan Arakawa last week to discuss the potential sale of the their interest in the island of Lanai.  Castle & Cooke currently owns 98 percent of the land on the island and has stated that a new potential buyer may be interested in the purchase.  While no name has been mentioned as to who the next owner of the island might be, the company has confirmed that they would consider selling the land.

Over the past few decades, Castle & Cooke and their chief executive billionare David Murdock have explored various options for the island including building luxury resorts or making new luxury housing developments.  Most recently, Murdock had planned to build giant windmills on the island that would deliver electricity to the island of Oahu through underwater cables.  However, local Lanai residents have opposed Murdock and Castle & Cooke throughout the years and stated that they wanted to keep the rural feeling for the island.

Source: Honolulu Star Advertiser, 6-19-2012, www.staradvertiser.com

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Lanai Real Estate – 24 Condominium Units to Be Sold

Local developer Peter Savio of Hawaiian Island Homes Ltd has just announced that he will be selling all of the units in the Lanai City Apartments as fee simple condominium units.  The complex was built in 1990 and contains a total of 24 units.  Savio announced that he will be selling studios for approximately $80,000 Fee Simple and one-bedroom units for between $95,000 and $99,000 Fee Simple.  Furthermore, Savio has arranged for financing to allow buyers to put no money down for the UNITA.

The units will initially be offered to the tenants living in the complex.  Following that preference will be given to Lanai residents.  If units are still available after those two offerings, units will be placed on the open market.

Source: Honolulu Star Advertiser, 4-14-2012, www.staradvertiser.com
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