Island Air replacing Casey

Paul Casey took over as Island Air’s CEO with plans to change the culture, improve the carrier’s reliability and upgrade passengers’ flying experience.

Now just 16 months into that turnaround, Casey is stepping aside to turn over the reins to an airline veteran from Florida.

In a surprise announcement, Island Air said Tuesday that David Pflieger, president and chief executive officer of Ft. Lauderdale, Fla.-based Silver Airways, will assume those roles at Island Air effective Oct. 1, and Casey will be given an advisory role on Island Air’s board of directors.

"That’s a big surprise," said Peter Forman, a local aviation historian. "The work that Mr. Casey has begun is not completed yet. He has had a very difficult culture change to bring about at Island Air and it’s been successful so far. But the work is not done yet and someone needs to continue his work. I sincerely hope that Paul Casey remains actively involved with the airline because the airline needs his involvement."

Casey didn’t return emails or a phone call, and the airline’s public relations firm said he was unavailable for interviews.

However, Casey said in a statement that he is grateful for his time with the company.

"It has been an enjoyable experience to work with the ownership and employees of Island Air as we rebuilt the company from the ground up," said Casey, whose previous service in Hawaii includes CEO positions at Hawaiian Airlines and the Hawaii Visitors and Convention Bureau. "It would not have been possible without their support and commitment, and I look forward continuing this progress in my new role as a senior adviser to the board."

Casey, who took over as CEO on May 1, 2013, represented the first major move at Island Air by billionaire Larry Ellison, who purchased the airline on Feb. 26 of that year — eight months after buying 98 percent of the island of Lanai.

But it’s been an uphill struggle. Island Air, which has about 5 percent of the interisland market and has more than 250 weekly flights, lost a combined $11.9 million in its first full year under Ellison’s ownership, according to the most recent data from the U.S. Department of Transportation.

Colorado-based airline consultant Mike Boyd said hiring Pflieger made sense. Pflieger oversaw the successful launch of Silver Airways as an independent regional carrier, operating a fleet of 33 aircraft flying 170 daily flights to 38 destinations within the U.S. and to the Bahamas.

"He’s a good choice," Boyd said. "There aren’t many regional independent airlines left in America, and he comes from one of the survivors," Boyd said. "Ellison is a success-focused businessman, and after buying Island Air, it makes sense to bring in high-powered people to run it."

Before Silver Airways, Pflieger led the financial turnaround and re-branding of Fiji’s national carrier, Air Pacific, into Fiji Airways. He also implemented Air Pacific’s first-ever profit-sharing and quarterly performance incentive plans for front-line employees. In addition, he created a corporate social responsibility program that focused on the environment, employee health and wellness, and education for underprivileged children.

"Dave is a highly respected industry veteran with an impressive track record at several of the world’s best airlines," Island Air Chairman Paul Marinelli said in a statement. "His award-winning customer service and operational record and his dedication to an employee-focused culture will be instrumental to our future success."

Pflieger couldn’t be reached for comment but said in a statement it was an honor to be selected as CEO of Island Air.

"I am incredibly excited about joining the team and working with our key industry partners and stakeholders to continue to improve the airline and serve our customers," Pflieger said.

Casey, who earlier this year described Island Air as "essentially a startup" when he took over, sought to upgrade the airline’s unreliable fleet of ATR-72 turboprops. In March, Island Air announced it had an order to buy two 71-seat Q400 NextGen turboprop aircraft in November and December, with an option to buy four more.

Under Casey, Island Air also launched several new initiatives that included a new guest services department, upgrades to Hono­lulu’s commuter terminal and a new in-flight magazine, Kikaha.

"We want to thank Paul Casey for his invaluable service to Island Air," Marinelli said. "Over the past 18 months he has stabilized the airline and created a strong foundation for Island Air’s future."

Forman, the aviation historian, said Pflieger will face a steep learning curve.

"The aviation business in Hawaii has some peculiarities compared to the rest of the country and Paul Casey was already up to speed in operating a Hawaii airline," Forman said. "So it will take time for anyone else to learn the nuances of what makes business in Hawaii different than on the mainland."