Island Air, a Hawaiian based airline carrier is set to shut down its operations after a series of legal attacks that were inflicted upon them. One of the main reasons why the company choose to go down this route is because the company had been in a state of bankruptcy for an extended period of time before the event. November 11th was the last day that the company flew its carriers and offered its services to customers.
Because of the numerous legal attacks that were being faced by the company, it became harder for Island Air to attract new customers and open its doors to new businesses. Investors who were already in the deal started pulling out of the airlines, while new investors became hesitant to invest into such a venture that was under this much legal scrutiny.
The company has been operational for the past thirty-seven years and offered its services to people traveling between the islands in Hawaii itself. A small but notable carrier, the company started seeing a decline only recently, which plummeted the company into the ground.
After the recent legal attacks and bankruptcy claims, the company tried to do everything that they could in their power to save Island Air and to continue operations. However, with the current financial situation that they are in, it becomes harder for the company to keep on with their operations and offer their services without experiencing a significant financial burden and backlash. They had hoped that the company would not come down to this stage, but there seemed to be no other choice, just to avoid all the hardships that come along with it.
They wanted to have a clean break, so as to avoid any potential hardships that their employees or customers would have to face. They had released a statement earlier this year about the airline closing down so that the people involved could make alternative plans.
A survey conducted in 2017 shed light on the fact that Island Air made up a total of 13% of all the air based travel within the state. The leading company that it stood in competition with was Hawaiian Airlines, which has a total of eighty percent of seats during the same period.
The company has reported that they are in debt and have experienced a loss that easily goes into the millions, which has caused them to take this drastic of a step.