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New Island Air owner indicates layoffs likely

Dave Segal
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STAR-ADVERTISER / SEPTEMBER 2012
Island Air is being sold for an undisclosed sum. The carrier’s first ATR 72 turboprop aircraft taxis on the tarmac at Honolulu Airport.

Island Air’s pending sale to an undisclosed buyer likely will result in layoffs.

The regional carrier said in a letter to employees dated Thursday that “the potential acquirer has indicated it expects Island Air will engage in a right sizing of the Island Air workforce as it transitions to new ownership.”

The state Department of Labor and Industrial Relations released the letter Monday in which the company’s 245 employees were given 60 days notice under the Hawaii Dislocated Workers Act that their employment may end on March 11 or later. There was no indication how many of the 245 employees may lose their jobs.

Island Air officials told the Star-Advertiser on Thursday that no layoffs were planned at this time.

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