Hawaii already holds the distinction — not always a welcome one — of being among the most remote spots on Earth. Now, once again, even the prospect of traveling from one island to the next in the chain has become more challenging, and more expensive.
The warning signs of financial trouble for Island Air had been there for some time but the sudden announcement Thursday that the interisland service was ending the next night still registered as a loss to the community and a shock to company employees. For the 423 staffers who were handed their termination notices, a dismal holiday season lies ahead.
Hawaiian Airlines for years has occupied the catbird seat in the market, even before the demise of its closest competitor, Aloha Airlines, in 2008. With that position now comes a measure of responsibility to serve its home community, as well as to enjoy the financial rewards.
Mokulele Airlines still flies to Maui, Molokai and Hawaii island, operating from the same terminal. It had to scale back its operation as well, having formerly flown out of Kalaeloa Airport. And that carrier’s bottom line is bolstered by its service, launched last year, linking California cities: Santa Maria, Burbank, Imperial/El Centro and Los Angeles.
Island Air had no such backstop revenue stream, even if it was the second-largest carrier serving neighbor island destinations. As such, its disappearance from the flight schedule, and its departure from the commuter terminal at the Daniel K. Inouye International Airport, have diminished travel options for Hawaii residents and visitors alike.
This was just the latest entry in a list of airline failures here. Go! airlines, which closed in March 2014, tops that roster, which also includes Discovery Airways, Mahalo Air, Mid Pacific Air and Pacific Wings.
Island Air’s problems came to light in detail in its Chapter 11 bankruptcy filing a month ago, in which the company disclosed that it was in discussions with prospective investors to secure an infusion of about $6.5 million.
Its description of its path back toward solvency included some sunny revenue forecasts — for example, the $6 million projected for next March was nearly double its October figure.
Further, there were missed lease payments on its aircraft fleet to the Ireland-based lessor Elix 8 Assets Ltd. The airline owed some $4.5 million there. Bankruptcy Judge Robert Faris, speaking at a hearing last week, told company representatives that he was “very troubled by how close the situation is here.”
Ultimately there proved no way to maintain operations even for the short term, and the shutdown was announced abruptly, effective last Friday. Hundreds of passengers had to scramble to complete their journeys; for its part, through Nov. 17, Hawaiian is honoring Island Air tickets for the scheduled day on a standby basis, and offering a $71 one-way fare to buy a confirmed ticket.
All of this raises the question: Can Hawaii sustain more than one full-scale interisland airline? There is no definitive answer, but the outlook is dim.
One glimmer of encouragement comes from the advent of service from Southwest Airlines to Hawaii. The initial phase certainly will be the mainland links, but company officials have said they are open to discussion about interisland flights at a later point. It’s doubtful that even under the best-case scenario, Southwest would fly a full neighbor island schedule.
But having at least some additional competition in that market would be welcome.
Hawaiian Air has offered some bulk rates for frequent fliers and various discounts to offset what are high interisland fares. Company officials should continue to look for ways to ensure affordable connections.
This is an island state, with families needing ways to keep those connections. Hawaii’s largest carrier has a key role to fulfill there.
