Island Air - Hawaii
10-18-2017, 03:25 PM
#124
Gets Weekends Off
Joined APC: Jan 2015
Posts: 148
Originally Posted by TimetoClimb
What a bummer...this airline has been up and down for years. Hopefully this is the good type of chp11 like republic went through.
It's hard to convince anyone you are a viable airline business without aircraft.
10-18-2017, 03:36 PM
#125
On Reserve
Joined APC: Oct 2017
Posts: 15
Well this is embarrassing.... I could just imagine this unfolding on "Airplane Repo" ... 
And to add, a solid source said the company was about to get cut off from Flight Safety for not paying the simulator bills back in May/June.
https://advisornews.com/oarticle/isl...s-three-planes
Oct. 18--Just days before Island Air filed for bankruptcy protection, it was in a pitched battle with the owner of three of its five planes to prevent the turboprops from being repossessed.
Island Air was $4.4 million behind on lease payments to Dublin, Ireland-*based Elix Assets 8 Ltd., owner of the three planes, when two Elix representatives showed up in Hawaii to take possession of the aircraft, Island Air said in a Tuesday filing in federal Bankruptcy Court.
And to add, a solid source said the company was about to get cut off from Flight Safety for not paying the simulator bills back in May/June.
https://advisornews.com/oarticle/isl...s-three-planes
Oct. 18--Just days before Island Air filed for bankruptcy protection, it was in a pitched battle with the owner of three of its five planes to prevent the turboprops from being repossessed.
Island Air was $4.4 million behind on lease payments to Dublin, Ireland-*based Elix Assets 8 Ltd., owner of the three planes, when two Elix representatives showed up in Hawaii to take possession of the aircraft, Island Air said in a Tuesday filing in federal Bankruptcy Court.
10-18-2017, 03:57 PM
#126
On Reserve
Joined APC: Oct 2017
Posts: 15
Let's look at recent events. In mid September, 2 airplanes were pulled from service. It just happened to be these 2 airplanes were the used Qs that sat in the desert for several years (formerly operated by Colgan) and were maintenance nightmares for us. Tough lesson to learn when obtaining used aircraft. The aforementioned 3 airplanes, that were nearly repossessed, are factory new under a different lessor.
With the removal of 2 aircraft, our DO stated that we would get those 2 aircraft back by mid November in the form of either a factory new and/or another used. He said 1 could be a 'classic Q400' meaning one of the first ones built with less seats (74?) making it even older than the 2 we just returned. (Seriously? After what we just went through with the previous used ones.) In addition to getting back 2 aircraft, a new destination would be announced. It was also stated that there would be no furloughs. Well, the November schedule was published last week.... and we still are operating 3 aircraft... with 70 pilots...... and no new city. (excluding the Lana'i charter)
Fast forward to the 16th and we're now under Chapter 11 bankruptcy protection because we can't pay the bills. It has been pitched that a "reorganization" is needed, yet jobs, salaries, and benefits will not be affected. Reorganization is just a fancy word for cutting the excess. You have to be naive to think that continuing to operate 3 aircraft with 70 pilots (and 60ish FAs?) is financially viable. At best, you need 45 pilots and that's being optimistic. The company could get away with 40.
It's interesting that our bankruptcy is being compared to other airlines... like United, Hawaiian, and Japan. Are you kidding me? We are an independent, inter-island feeder with Q400s. Not an established widebody legacy operation! Then our MEC chairman compares us to Mesa's bankruptcy in a followup email. Again we have 3 turboprop aircraft. We don't have RJs and do not operate on the mainland. Aloha Airlines entered chapter 11 in 2008.... 10 days later their doors closed. That's how quickly sh!t can hit the fan. Throw in the recent Southwest Airlines 2018 news (with possible inter-island new flights) to the mix and now Island Air management and investors have their work cut out for them.
At best, nothing happens on the operational side- staff and/pay- and we continue with 3 aircraft until loads improve before we can add more aircraft. Nearly half of the crews would continue to sit on reserve hardly flying (which also isn't a great thing from a recency point of view). Leases are renegotiated and somehow we start breaking even or profiting. At worst... furloughs, captain downgrades and/or contract concessions (paycuts, work rules relaxed, etc)... which is more likely. We are told not to run for the hills with our hair on fire. Well, having a backup plan is EXACTLY what every WP pilot in the bottom third should be working on right now. I'm guessing HAL, Aloha Air Cargo, and Empire/Ohana just received (or will receive) a stack of applications from WP pilots. Next week, I urge all WP pilots to go to one of the ALPA meetings. $4.4 mil behind on aircraft payments is a huge red flag.
With the removal of 2 aircraft, our DO stated that we would get those 2 aircraft back by mid November in the form of either a factory new and/or another used. He said 1 could be a 'classic Q400' meaning one of the first ones built with less seats (74?) making it even older than the 2 we just returned. (Seriously? After what we just went through with the previous used ones.) In addition to getting back 2 aircraft, a new destination would be announced. It was also stated that there would be no furloughs. Well, the November schedule was published last week.... and we still are operating 3 aircraft... with 70 pilots...... and no new city. (excluding the Lana'i charter)
Fast forward to the 16th and we're now under Chapter 11 bankruptcy protection because we can't pay the bills. It has been pitched that a "reorganization" is needed, yet jobs, salaries, and benefits will not be affected. Reorganization is just a fancy word for cutting the excess. You have to be naive to think that continuing to operate 3 aircraft with 70 pilots (and 60ish FAs?) is financially viable. At best, you need 45 pilots and that's being optimistic. The company could get away with 40.
It's interesting that our bankruptcy is being compared to other airlines... like United, Hawaiian, and Japan. Are you kidding me? We are an independent, inter-island feeder with Q400s. Not an established widebody legacy operation! Then our MEC chairman compares us to Mesa's bankruptcy in a followup email. Again we have 3 turboprop aircraft. We don't have RJs and do not operate on the mainland. Aloha Airlines entered chapter 11 in 2008.... 10 days later their doors closed. That's how quickly sh!t can hit the fan. Throw in the recent Southwest Airlines 2018 news (with possible inter-island new flights) to the mix and now Island Air management and investors have their work cut out for them.
At best, nothing happens on the operational side- staff and/pay- and we continue with 3 aircraft until loads improve before we can add more aircraft. Nearly half of the crews would continue to sit on reserve hardly flying (which also isn't a great thing from a recency point of view). Leases are renegotiated and somehow we start breaking even or profiting. At worst... furloughs, captain downgrades and/or contract concessions (paycuts, work rules relaxed, etc)... which is more likely. We are told not to run for the hills with our hair on fire. Well, having a backup plan is EXACTLY what every WP pilot in the bottom third should be working on right now. I'm guessing HAL, Aloha Air Cargo, and Empire/Ohana just received (or will receive) a stack of applications from WP pilots. Next week, I urge all WP pilots to go to one of the ALPA meetings. $4.4 mil behind on aircraft payments is a huge red flag.
10-20-2017, 07:38 AM
#127
On Reserve
Joined APC: Oct 2017
Posts: 15
Island Air allowed limited use of cash for payroll | West Hawaii Today
From bad to worse? The company wasn't paying its aircraft bills. And now needs to dig into its cash reserves to make payroll?
well at least the checks last night.
From bad to worse? The company wasn't paying its aircraft bills. And now needs to dig into its cash reserves to make payroll?
well at least the checks last night.
10-25-2017, 09:43 PM
#128
On Reserve
Joined APC: Mar 2017
Posts: 17
https://www.bizjournals.com/pacific/...ire-fleet.html
Wells Fargo Bank Northwest, National Association filed a lawsuit Tuesday against Island Air in an attempt to retrieve the airline's three aircraft, which comprises the its entire fleet.
Wells Fargo, the trustee of Island Air’s three Bombardier Q400 turboprops, filed the appeal to prohibit the Honolulu-based airline from using the three aircraft and to pay Ireland-based lessor Elix Assets 8 Ltd the $4.58 million it is owed.
In the lawsuit, Elix claims the values of the aircraft – which are worth a total of about $75 million – are depreciating daily due to the airline’s “improper operation.”
Elix said Island Air, which filed for an emergency Chapter 11 bankruptcy protection last week, has not paid rent or maintenance reserves since July. The airline is currently using cash collateral until a final hearing on Nov. 8.
In a hearing last week, U.S. Bankruptcy Court Judge Robert Faris said Island Air must present a budget by Oct. 27, ahead of the November hearing.
The airline currently operates 200 flights each week between the four major Islands and employs more than 400 individuals.
Wells Fargo Bank Northwest, National Association filed a lawsuit Tuesday against Island Air in an attempt to retrieve the airline's three aircraft, which comprises the its entire fleet.
Wells Fargo, the trustee of Island Air’s three Bombardier Q400 turboprops, filed the appeal to prohibit the Honolulu-based airline from using the three aircraft and to pay Ireland-based lessor Elix Assets 8 Ltd the $4.58 million it is owed.
In the lawsuit, Elix claims the values of the aircraft – which are worth a total of about $75 million – are depreciating daily due to the airline’s “improper operation.”
Elix said Island Air, which filed for an emergency Chapter 11 bankruptcy protection last week, has not paid rent or maintenance reserves since July. The airline is currently using cash collateral until a final hearing on Nov. 8.
In a hearing last week, U.S. Bankruptcy Court Judge Robert Faris said Island Air must present a budget by Oct. 27, ahead of the November hearing.
The airline currently operates 200 flights each week between the four major Islands and employs more than 400 individuals.
11-09-2017, 05:39 PM
#130
Gets Weekends Off
Joined APC: Jun 2017
Posts: 144
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