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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.
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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 notice their employment could end March 11 or later. There was no indication how many of the 245 employees could lose their jobs.
The airline has declined to identify the potential buyer. Island Air said there are a number of hurdles that must be cleared before the transaction closes, but it’s optimistic the new ownership will be in place within the next six to eight weeks.
One group with strong Hawaii ties had been seriously negotiating with Island Air owner Charlie Willis for the past year but couldn’t come to an agreement, according to people familiar with the situation. That group included former Hawaiian Airlines CEOs Bruce Nobles (1993-1997) and Paul Casey (1997-2002), along with Mary Charles, co-owner of Hotel Lanai and the former owner of MC&A, a Hawaii-based destination management company that offers meeting and event planning services for groups and professional organizations.
Island Air, which has about 5 percent of the interisland passenger market share, was purchased from Aloha Airgroup in 2004 by Willis’ family-owned company Gavarnie Holding LLC, which is based in Novato, Calif. Island Air had been a sister airline to Aloha Airlines.
Willis didn’t respond Monday to a message seeking comment.
