Island Air took another major step Monday in its ongoing expansion by signing a letter of intent to lease five ATR 42 turboprop aircraft.
The agreement follows on the heels of leases for two ATR 72s that Island Air signed earlier this year with Danish-based Nordic Air Capital. The new letter of intent is with Aerway Leasing LLC, an aviation leasing company with offices in Illinois and Wisconsin.
Island Air’s expansion in the rapidly growing interisland market is part of a business plan it announced in July that includes replacing its entire fleet, as well as re-branding with a new paint scheme on its aircraft, a new logo and an enhanced website.
Last month Island Air said it received a capital infusion from Dublin-based Kahala Aviation, but the airline declined to disclose financial details because it said the transaction was private.
"These (latest five) aircraft represent an integral part of our plan to deliver on our service commitment to the ever-increasing number of guests flying with us each day and is the next step in our (new business plan)," Island Air Chief Executive Lesley Kaneshiro said in a statement. "It’s a very exciting time at Island Air as we have a lot to look forward to."
Island Air said the first of two 64-seat ATR 72s will arrive before the end of this month, with the other ATR 72 and the first two 46-seat ATR 42s due by the end of this year. The remaining three ATR 42s are expected to join the fleet next summer. The aircraft are manufactured by Franco-Italian airframe maker ATR.
The airline next year plans to phase out the three 37-seat Bombardier de Havilland Dash 8 aircraft currently in its fleet, as well as return the 33-seat Saab 340B plane that it is leasing this year.
Island Air said it will announce new routes in the future.
Other Hawaii-based airlines also have been expanding their interisland operations as state tourism continues on pace this year to break records for visitor arrivals and spending,
Hawaiian Airlines, which earlier this year formed a Maui hub with increased flights to and from that island, said in July it plans to establish a turboprop subsidiary to fly to smaller airports beginning next year. And Mokulele Airlines, which recently added a fifth nine-seat Cessna Grand Caravan 208B turboprop, plans to have a sixth one by Oct. 1 when it initiates two daily flights between Kahului and Hana airports.
Island Air’s parent company, Novato, Calif.-based Gavarnie Holding LLC, purchased the carrier from Aloha Airgroup in 2004.
Founded in 1980 to provide service between Honolulu and Princeville, Kauai, Island Air offers more than 350 weekly flights to both the state’s larger and smaller airports.
The airline has more than 250 employees and said that it intends to hire more workers as its service level increases.
