LAXintl
Topic Author
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

Island Air Hires Restructuring Expert; BK Possible

Sat Feb 09, 2013 12:32 am

A month ago it was reported the carrier was in talks to be acquired, but now news is out that the company has hired a law firm that specializes in bankruptcies as a step to considering "strategic alternatives".

Attorney for the law firm Skadden, Arps, Slate Meagher & Flom LLP & Affiliates, who say they are advising the airline on options which include debt restructuring or "in the worst-case scenario, a shutdown and liquidation."

In addition this week, the Island Air board changed with the appointment of Peter Kravitz also an attorney whose practice has focused on "administering, liquidating and litigation trusts.”

Sounds ominous.

Story:
http://www.bizjournals.com/pacific/b...ir-being-advised-on-strategic.html
and
http://www.bizjournals.com/pacific/n...cturing-expert-joins-board-of.html

=
From the desert to the sea, to all of Southern California
 
jpetekyxmd80
Posts: 3976
Joined: Fri Aug 01, 2003 3:16 am

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Feb 09, 2013 12:55 am

Um, yeah, does not sound good. Makes me wonder why they went ahead with new branding and ATR acquisition if they were in such dire straits.
The Best Care in the Air, 1984-2009
 
User avatar
usxguy
Posts: 958
Joined: Wed Jan 25, 2006 1:28 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Feb 09, 2013 1:12 am

Well today was the deadline for the unions to allow concessions or Ellison's group was going to walk away.
xx
 
SWALUV
Posts: 148
Joined: Fri Apr 13, 2012 7:43 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Feb 09, 2013 4:23 am

Is it possible that HA is looking at buying them? There was talk that HA was looking for props, this would take care of that as well as strengthen their inter-island presence.
 
ridgid727
Posts: 931
Joined: Thu Jul 24, 2008 1:58 am

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Feb 09, 2013 5:26 am

Quoting SWALUV (Reply 3):
Is it possible that HA is looking at buying them? There was talk that HA was looking for props, this would take care of that as well as strengthen their inter-island presence.

Probably not, as HA bought their own ATR's and has contracted Empire Airlines out of Idaho to operate them. I believe that operation is to start sometime in April.
 
User avatar
airportugal310
Posts: 3217
Joined: Sun Apr 11, 2004 12:49 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Feb 09, 2013 5:35 am

Quoting SWALUV (Reply 3):

No.

Quoting ridgid727 (Reply 4):

June.
I sell airplanes and airplane accessories
 
LAXintl
Topic Author
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 20, 2013 6:00 pm

Apparently Island Air will ground 1 of its 2 Dash-8s starting this week as it has timed out and needs overhaul.

These guys that desperate that they can't do required maintenance to keep the fleet airworthy??

http://www.bizjournals.com/pacific/b...-may-cut-flights-this-weekend.html

=
From the desert to the sea, to all of Southern California
 
User avatar
usxguy
Posts: 958
Joined: Wed Jan 25, 2006 1:28 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 20, 2013 9:39 pm

C & D checks put a plane out of service for a long time. They are just unwilling to wet-lease or have someone else do the fill-in while they planes are out. Pride is going to sink this airline. And the bad news is Mokulele is already quite full, so except for a few Pacific Wings flights, there's no one to pick up the slack in West Maui, Lanai, and Molokai...
xx
 
scarebus03
Posts: 231
Joined: Sat Apr 30, 2005 3:14 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 20, 2013 10:36 pm

It could also be a ploy to get swift union agreement to the buy out. I hope they have a subcharter ready.
No faults found......................
 
azjubilee
Posts: 3402
Joined: Sat Apr 29, 2000 5:26 am

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 20, 2013 10:41 pm

Ohana by Hawaiian can't come soon enough.
 
brilondon
Posts: 3018
Joined: Sun Aug 21, 2005 6:56 am

RE: Island Air Hires Restructuring Expert; BK Possible

Thu Feb 21, 2013 12:30 am

Quoting LAXintl (Thread starter):
Sounds ominous.

I don't think that bankruptcy is ominous as they might just be positioning themselves ti be sold. You don't have to hire a restructuring expert just for companies going bankrupt.
Rush for ever; Yankees all the way!!
 
ridgid727
Posts: 931
Joined: Thu Jul 24, 2008 1:58 am

RE: Island Air Hires Restructuring Expert; BK Possible

Thu Feb 21, 2013 1:30 am

The reliability of Island Air has really taken a hit in the last few months. I do believe that the sustainability of an operation such as Island Air without much room for any growth dictates the outcome of what will eventually happen to them, especially with HA forming their prop operation.
It would appear that they should have tried to develop a split operation similar to what Cape Air Does, perhaps on the mainland in an area that could really use a prop operation. (wherever that may be)

I wish the best for everyone at Island Air, I have always enjoyed their service, and it wasn't too long ago that they had great service.
 
hawaiian717
Posts: 3139
Joined: Tue May 18, 1999 2:46 am

RE: Island Air Hires Restructuring Expert; BK Possible

Fri Feb 22, 2013 4:53 am

A follow up report states Island Air will operate all flights as normal this weekend, and that the ATR 72 could go into service next week.

http://www.bizjournals.com/pacific/b...nd-air-says-business-as-usual.html
 
User avatar
usxguy
Posts: 958
Joined: Wed Jan 25, 2006 1:28 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Fri Feb 22, 2013 5:46 am

... which means 25% of the flights will still be cancelled, 25% will actually be on time, and the other 50% will be 2-3 hours late...
xx
 
User avatar
usxguy
Posts: 958
Joined: Wed Jan 25, 2006 1:28 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Tue Feb 26, 2013 11:56 pm

And it seems as though the FAA has signed off on the ATR - 72

Not For Release
February 26, 2013

Hawaii Island Air Makes Major Announcement Today

HONOLULU - Island Air, the premier Hawaii interisland airline, will make a major announcement today at a news conference to be held at their head office. Media are invited to attend with cameras.

Who: - Les Murashige, President, Island Air
- Michael Rodyniuk, Executive Chairman, Gavarnie Holding LLC
- Invited Guest


What: News conference
Note: Digital Broll video of Island Air ATR 72 and photography to be provided


Time: 2:30 pm, February 26, 2013


Where: Island Air Hanger
99 Kapalulu Place
Honolulu, Hawaii
Google Map Link: http://goo.gl/ZAARy
xx
 
User avatar
aloha73g
Posts: 1849
Joined: Mon Jul 07, 2003 6:30 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 27, 2013 1:08 am

It's official... "Oracle's Ellison buys Island Air, adding to his Hawaii portfolio"

http://www.staradvertiser.com/news/b...hased_airline.html?id=193421421&gt

Quote:
Billionaire Larry Ellison, who bought 97 percent of Lanai in June, is the new owner of Island Air, the inter-island airline confirmed today.

Ellison, the CEO and co-founder of software giant Oracle Corp., completed the sale today.

Island Air announced in January it had a preliminary sale agreement with an undisclosed buyer, and sources told the Star-Advertiser that Ellison was the purchaser.

-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
 
Wingtips56
Posts: 752
Joined: Thu Dec 16, 2010 1:26 am

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 27, 2013 2:00 am

OK, so now who is going to run the company? It doesn't sound from A.netters that continuing the current management would be the best way forward.
Worked for WestAir, Apollo Airways, Desert Pacific, Western, AirCal and American Airlines
 
ridgid727
Posts: 931
Joined: Thu Jul 24, 2008 1:58 am

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 27, 2013 2:07 am

Quoting Wingtips56 (Reply 16):
OK, so now who is going to run the company? It doesn't sound from A.netters that continuing the current management would be the best way forward.

They gotta do something about reliability. Its been horrible of late!
 
User avatar
aloha73g
Posts: 1849
Joined: Mon Jul 07, 2003 6:30 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 27, 2013 2:18 am

Quoting Wingtips56 (Reply 16):
OK, so now who is going to run the company? It doesn't sound from A.netters that continuing the current management would be the best way forward.

Island Air got new management just a few months ago http://www.staradvertiser.com/busine..._Business_Briefs.html?id=172779961

Quote:
New executive management at Island Air

Les Murashige has been named president and Lesley Kane­shiro chief financial officer of Island Air.

Murashige has a nearly lifelong career in Hawaii's aviation industry, starting with his first job as a part-time airplane cleaner at Hawaiian Airlines, up to executive positions with defunct Aloha Airlines. He has previously held executive positions at Island Air.

"We are pleased to welcome Les Mura­­shige back to the Island Air family," said owner Charles Willis in a statement. "Les brings a wealth of knowledge and experience to guide the transition we have been planning and are now implementing."

Since then Lesley Kaneshiro (Island Air CEO prior to Les Murashige) has joined the management team Ellison hired to run Lanai. http://www.bizjournals.com/pacific/n...an-chun-to-lead-lanai-resorts.html

Quoting ridgid727 (Reply 17):

They gotta do something about reliability. Its been horrible of late!

The new aircraft coming on-line now should help a lot in that regard. It's totally anecdotal, but for the past few months my aunty's monthly trips to & from Lanai have all been on-time.

-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
 
T prop
Posts: 912
Joined: Tue Apr 03, 2001 4:33 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Wed Feb 27, 2013 3:11 am

Well that's good that they appear to be sticking around. I fly to Molokai once in a while and I wouldn't feel comfortable having to ride in a single engine Cessna Caravan that operates under part 135 rules.
 
User avatar
RWA380
Posts: 4474
Joined: Fri Feb 18, 2005 10:51 am

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Mar 02, 2013 7:56 pm

Quoting T prop (Reply 19):
I fly to Molokai once in a while and I wouldn't feel comfortable having to ride in a single engine Cessna Caravan that operates under part 135 rules.

It sure will be nice to see HA back on MKK & LNY, adding reliability and connectivity around the pacific rim. I do hope WP sticks around, It's been a long time since I spent a week at Wavecrest, maybe I should go back and re-visit MKK.

On a side note, I'd like to have another option on KOA-OGG, seems it's either 2 HA flights at $100 a person, or pacific wings at $60, there was only 1 Mokulele flight listed for the Saturday we are flying, and as T prop said I do not feel comfortable with those prop options, I'd love to see WP flying KOA-OGG, if they pull it together by October.
Next Flights: PDX-HNL-OGG-LIH-PDX On AS, WP & HA
 
brilondon
Posts: 3018
Joined: Sun Aug 21, 2005 6:56 am

RE: Island Air Hires Restructuring Expert; BK Possible

Sat Mar 02, 2013 11:55 pm

Quoting RWA380 (Reply 20):
On a side note, I'd like to have another option on KOA-OGG, seems it's either 2 HA flights at $100 a person, or pacific wings at $60, there was only 1 Mokulele flight listed for the Saturday we are flying, and as T prop said I do not feel comfortable with those prop options, I'd love to see WP flying KOA-OGG, if they pull it together by October.

I agree, those caravans are a little unnerving when flying through some of those winds that they have make for some fun flying.   
Rush for ever; Yankees all the way!!
 
User avatar
usxguy
Posts: 958
Joined: Wed Jan 25, 2006 1:28 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Mon Mar 04, 2013 3:37 am

Mokulele actually has 15 flights a day in KOA-OGG.... it could be that only 1 had seats open, which wouldn't surprise me.

Island Air's management really hasn't changed... Les has been there since before 2005, and took a year off & recently came back.. not sure that's a big management change.
xx
 
User avatar
RWA380
Posts: 4474
Joined: Fri Feb 18, 2005 10:51 am

RE: Island Air Hires Restructuring Expert; BK Possible

Mon Mar 04, 2013 4:05 am

Quoting usxguy (Reply 22):
Mokulele actually has 15 flights a day in KOA-OGG.... it could be that only 1 had seats open, which wouldn't surprise me.


The date I was looking for is 10/19/13, it's a Saturday, but it's still odd only 1 departure that day showed up on Orbitz.
Next Flights: PDX-HNL-OGG-LIH-PDX On AS, WP & HA
 
User avatar
usxguy
Posts: 958
Joined: Wed Jan 25, 2006 1:28 pm

RE: Island Air Hires Restructuring Expert; BK Possible

Mon Mar 04, 2013 11:46 pm

that's odd... I don't think their schedule goes out that far, so you shouldn't be seeing anything!
xx