Island Air Anticipates Sales Within Weeks

Hawaii Island Air said Thursday that it has an agreement to sell the interisland airline Island Air to an undisclosed buyer within the next few months.

“This is a great opportunity for the future of the company”, Les Murashige, president of Hawaii Island Air Inc., which does business as Island Air, said in a statement. “The company has gone through a number of challenges recently and a new owner will bring a fresh perspective to the company.”

There are a number of hurdles the airline must clear before a sale can close, said Murashige, who said he was optimistic the sale could close within six to eight weeks.

“There has been a lot of hard work and due diligence done over the holidays,” he said. “We are prepared to move forward and have been meeting with the relevant groups who have a role in making this happen.”

Island Air, which is owned by Gavarnie Holding LLC, said in August that it had completed a first step of corporate refinancing with Kahala Aviation of Dublin, Ireland. The airline had announced plans in July to double the number of aircraft it uses on its interisland routes while replacing its aging turboprop fleet.

Hawaiian Holdings Inc. parent company of Hawaiian Airlines, said last year that it had purchased turboprop aircraft for a new interisland airline that would offer service to Lanai and Molokai, two of Island Air’s markets.

(Report Provided by Pacific Business News)