Hawaiian Airlines offers to buy assets of bankrupt Island Air
Hawaiian Airlines’ parent company has proposed a deal to buy the assets of bankrupt Hawaiian interisland carrier Island Air.
It was revealed in a last-minute motion filed in the bankruptcy case that Hawaiian Holdings Inc. wants to buy Island Air’s FAA operating permit and other assets.
It has offered just $750,000.
That represents $450,000 for the operating certificate plus $300,000 for other assets including ground-service equipment and Island Air’s frequent flier data.
It will then release funds to pay for bankruptcy administration costs, the motion said.
Hawaiian spokesman Alex Da Silva said the purchase will enable Hawaiian to operate its turboprop airline, Ohana by Hawaiian in-house.
Ohana flight operations are currently outsourced to Idaho-based Empire Airlines.
"If approved, the sale will allow ‘Ohana by Hawaiian to assume oversight of operations currently provided under contract by Empire Airlines. We believe that assuming the FAA certificate will greatly benefit our guests by improving the efficiency and reliability," said Hawaiian spokesman Alex Da Silva.
If approved by the court the asset sale would then reconvert the Chapter 7 liquidation back to a Chapter 11 reorganization.
A hearing to consider the proposal is set for January 5, 2018.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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