Saturday, December 12, 2015

Island Airlines to file for bankruptcy • Nantucket, Barnstable officials say shutdown will have 'major impact'



HYANNIS — Island Airlines is expected to file for bankruptcy following its closure on Friday, according to a state transportation official. At the same time, local airport officials expect to convene early next week to find alternatives for passengers and freight service.

"Yesterday MassDOT was informed that the airline ceased operations that day and will be filing for bankruptcy," state Department of Transportation spokesman Michael Verseckes said in an email Saturday. "It's our understanding that Barnstable Airport personnel will be working with Island Air staff to provide any assistance that they may need in the coming weeks."

Airport officials in Hyannis and Nantucket said Saturday that they will know more early next week about the impact of the airline's closure, which was announced Friday on the company’s website. The priority, though, is to find alternatives for passenger and freight transportation, the officials said.

At Barnstable Municipal Airport in Hyannis, Island Airlines is one of two year-round passenger carriers in the region. Island Airlines also operates Cape and Islands Air Freight out of the Hyannis airport, said airport Manager Roland “Bud” Breault. The airline company ran regular flights between Hyannis and Nantucket.

“Officially we have not been notified,” Barnstable Airport Commission Chairman Ronald Persuitte said Saturday. “Everything would be speculation on my part. If it is permanent, clearly it’s going to have a major impact at the airport for the flying public. Hopefully we’ll be able to get some assistance from Cape Air. As far as freight is concerned, it is too early to yell doom and gloom. That can be adjusted and picked up by other sources.”

Nantucket Airport Commission Chairman Daniel Drake said the shutdown is a fact.

“There’s absolutely a financial impact,” he added. “We’re not quite prepared to talk about that yet. Our principal objective is to get some level of service back. We’ll be working with Hyannis to get additional passenger capacity and restore freight service.”

Year-round freight service is a concern of Barnstable Town Councilor Eric Steinhilber as well. The passenger loads are lighter in the winter and are therefore less of an immediate worry than freight, Steinhilber, the council liaison to the airport commission, said Saturday.

“The airport and the town will be looking for other carriers to fill that void,” he said. “In some ways, it’s an opportunity for other carriers and other businesses to come in and help take care of the passengers and the freight services.”

The financial impact of the closure is still be to determined, the officials said.

“We’re very concerned about how it’s going to impact us and how it’s going to impact the community,” Persuitte said. “We’ll do everything we can to mitigate things, if it is official.”

Island Airlines had between 80 and 100 employees, according to an airline spokesman in 2013. The company ended its group health insurance for employees in 2013. That same year, the airline was in the midst of replacing its commercial fleet of Cessna 402s with Cessna Grand Caravans. The airline bought a competitor, Nantucket Shuttle, in 2011, and sold off most of Nantucket Shuttle's fleet, which helped fund the transition to the Grand Caravans. It also bought Ocean Wings, a private charter operation, in 2011 and expanded its charter flights throughout the Northeast.

Source: http://www.capecodtimes.com

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