Billionaire Larry Ellison owns 98 percent of Lanai, but he no longer calls the shots at Island Air.

So in a surprising move Tuesday, the state’s second-largest airline announced it is discontinuing its two daily flights to Lanai beginning April 1. Ellison, who bought Island Air in February 2013 to ensure adequate service for visitors to Lanai, sold majority control of the airline in January to investors led by Honolulu venture capitalist Jeffrey Au.

“It was a difficult decision,” Island Air CEO Les Murashige said. “However, as Island Air continues to restructure, we are taking a hard look at all of the destinations we serve and where our resources are best deployed.”

‘Ohana by Hawaiian, which has four daily flights from Honolulu to Lanai, soon will be the only regular service to Lanai.

“I am concerned that this leaves only one other airline offering flights and am worried about the effect this will have on ticket pricing and the limited fight schedules,” said state Rep. Lynn DeCoite (D, Lanai-Molokai-Paia-Hana).

Customers with reservations to or from Lanai on April 1 or later will have the option to receive a full refund or have their reservation transferred to another airline. For information, call 800-388-1105.