Island Air ticket holders urged to seek refunds ASAP

The executive director of the state Office of Consumer Protection urges Hawaii consumers who purchased Island Air travel tickets to seeks refunds from their credit or debit card providers.

Consumers seeking refunds should act as soon as possible, OCP executive director Stephen Levins said, and seek other arrangements for their travel plans, given that Island Air has discontinued operations.

“In most instances paying by credit card makes it easier for consumers to obtain a refund for services or goods that are not provided,” said Levins in a statement. “In view of this, anyone who purchased an unused ticket by credit card needs to contact their credit card company as soon as possible to request a chargeback.”

Hawaii Island Air, Inc., dba Island Air filed for Chapter 11 bankruptcy protection on Oct. 16, and offered its last day of service on Nov. 10 after 37 years in business. The company has since converted its case to Chapter 7 and a trustee has been appointed to oversee the liquidation of the company’s unencumbered assets to generate cash to pay creditors.

The liquidation process will be lengthy and what will be available for creditors is unclear, according to the office, adding that in circumstances such as this, the consumers’ best option is to obtain refunds from their card providers. Consumers need to pay attention to time limits when applying for a refund.

Federal law establishes a 60-day deadline from the time a credit card statement with the improper charge is first posted. Some credit card companies may establish more generous policies.

More information on disputing credit card charges is available on the Federal Trade Commission website.