The President of Mokulele Airlines is pleading for help from local investors to help save his company.
Mokulele is late on paying $291,000 to Republic Airways, and has until tomorrow to make the payment.
Mokulele leases three jets from the mainland-based Republic Airways.
We learned tonight that Mokulele employees have volunteered to have their paychecks delayed so that the money can be used to pay Republic tomorrow.
But another payment will be due in about a week, and Mokulele's President says unless investors step in to help, his company could go under.
Mokulele Airlines started inter-island jet service last November, after borrowing $8M, and leasing three jets plus crew members from Republic Airways.
Mokulele is required to make payments three times a month to Republic.
And just as Mokulele is starting to take off, with jet flights to Kauai, Maui, and the Big Island, the company has encountered turbulence.
"During holidays we burned a lot of our operating cash. For operations, expansion, we had to get infrastructure, we're building a new reservations system, and maintenance facility," said Bill Boyer, Mokulele Airlines President & CEO.
As a result, Mokulele wasn't able to make a $291,000 payment to Republic last Wednesday.
And based on the agreement the two companies have, Mokulele has five business days past the due date to make the payment or else Republic will gain control off Mokulele's assets, including the company's seven turbo prop planes.
Tomorrow is that final deadline.
"We are going to be able to make the payment tomorrow," said Boyer.
Thanks to the employees, who have volunteered to have their paychecks delayed, so the money can be used to pay the bill.
Mokulele has almost 200 employees, and 85% of them are former Aloha Airlines employees.
"By doing that it gave us another week of life, and it's amazing, one ohana," said Boyer.
But Boyer says he's not sure how much longer Mokulele will survive without help from investors because another $291,000 payment is due in about a week.
"What we're seeking right now is angel investors. We're a private company," said Boyer.
"We have no interest or desire to run an airline in Hawaii, so we remain hopeful and we're working with Mokulele in their recapitalization plan," said Scott Durgin, Republic Airways -- Vice President, Strategic Alliances.
Boyer says if Mokulele gets $7M to $10M from investors, his company is projected to start turning a profit by summer.
"I put up everything I had to help the people of Hawaii, so now I'm asking the people of Hawaii to to help my family, which are my employees," said Boyer.
Durgin says these financial dealings won't impact the scheduled flights.
And if Mokulele defaults on a payment in the future, Republic plans to continue the inter-island jet service.


Hope it turns out well for everyone at Mokulele!!!!

I can almost say for sure the pilot group didn't agree to delay thier paycheck. It probably got taken away....

"I put up everything I had to help the people of Hawaii, so now I'm asking the people of Hawaii to to help my family, which are my employees," said Boyer.


What????? GO! saved us first..................

go! saved no one..... Dorvan.....

Then why won't Dorvan help out now!!!!!!

he outta money too many be?

Nope, because his kids don't want him to give anymore money to Bill.

oooh thats got suck....maybe if Bill listen to his employees in the first place this would never have happened....ah well thast what you get for thinking people will change

Does anyone know what happened to the chieftan's that Mokulele use to operate?

Not to sure but I think two of them went to Canada and the other went to South America somewhere. Not sure what kinda of operations they are being used for though.