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History

Princeville Airways

Island Air was incorporated in 1980 by Colorado-based Consolidated Oil and Gas as Princeville Airways. It began scheduled services on September 9, 1980, between Honolulu and Princeville using two DHC-6 Twin Otter aircraft. It served a regular commuter route between Princeville and Honolulu, primarily for Princeville Resort hotel guests. The Princeville Airways fleet consisted of eight DHC-6 Twin Otter aircraft.

Aloha IslandAir

In May 1987, Consolidated Oil and Gas sold Princeville Airways to Aloha Air Group, the parent company of Aloha Airlines. Princeville Airways was renamed Aloha IslandAir and served the growing inter-island commuter needs that Aloha Airlines could not accommodate with its larger jetliners. In June 1992, Aloha IslandAir registered the name Island Air as its trade name. In 1995, newly renamed Island Air was granted certification by the Federal Aviation Administration to operate larger aircraft to serve the burgeoning commuter market in Hawaii. In April of that year, Island Air took possession of its first thirty-seven seat De Havilland Canada Dash 8 aircraft.

Hawaii Island Air

Ownership under Gavarnie Holding, LLC

Dash 8-100 in the livery introduced in 2006
In December 2003, it was announced that Gavarnie Holding, LLC would purchase Aloha IslandAir from the Aloha AirGroup, making Island Air Hawaii's third largest independent airline. The purchase was completed on May 11, 2004, and the company was renamed Hawaii Island Air, Inc., although the airline continued to do business as "Island Air." After the purchase, Island Air expanded its business, acquiring more aircraft and flying new routes.
In May 2008, Island Air was awarded Essential Air Service routes from Kansas City International Airport to Joplin, Missouri, Grand Island, Nebraska, Harrison, Arkansas, and Hot Springs, Arkansas but did not announce specific starting dates.The following month, however, the airline withdrew from its contract after concluding that a mid-September startup date was unrealistic, citing staffing and fuel costs.

On July 19, 2012, Island Air revealed a new business model which included a complete image and brand overhaul. This coincided with the arrival of the airline's new ATR fleet of turboprop aircraft in August.The airline also unveiled a new website to go alongside its new brand and image launch.
On October 4, 2012, Les Murashige was appointed as the company's new President and CEO replacing Lesley Kaneshire

Ownership under Larry Ellison

Larry Ellison

On January 10, 2013, Island Air announced that the company would be sold to an undisclosed buyer.
On January 18, 2013, Oracle Corporation CEO Larry Ellison, who had recently acquired most of the island of Lanai from David H. Murdock, was reported to be the buyer, though this was not confirmed by the airline at the time. On February 26, 2013, the airline announced that the sale had been completed, confirming Ellison as the buyer. The airline also simultaneously announced certification of its first ATR 72, which would go into service the following day.

Island Air (officially Hawaii Island Air) was an independent Hawaiian commuter airline based in Honolulu, Hawaii.[1] It operated scheduled inter-island passenger services in Hawaii. Its main base was the Daniel K. Inouye International Airport[2] on Oahu.

The airline maintained a code share and frequent flyer agreement with United Airlines. Hawaiian Airlines halted its commercial relationship with Island Air in 2012 when it announced plans to begin operating ATR-42 regional turboprop airliners in the islands under its own brand. Island Air also operated its own frequent flyer program, Island Miles (formerly Cloud 9).

Island Air ceased all operations on 10 November 2017 after 37 years of service between Hawaii's islands, carrying 13% of intra-Hawaii seats in the first three quarters of 2017, competing against Hawaiian Airlines carrying 80%. For the second quarter of 2017, Island Air posted an operating loss of $4.9 million and a net loss of $8.2 million, and filed for Chapter 11 bankruptcy protection on 17 October as it couldn't find new investors to satisfy lessors Wells Fargo Bank Northwest and Elix 8 who want to repossess its five Bombardier Q400s, which replaced five ATRs.

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