Hawaii’s Island Air filed for Chapter 11 bankruptcy protection on October 16. The step was necessary since the carrier is threatened to lose all its leased aircraft. 

According to the carrier’s statement during a negotiation process of the lease contract for its fleet the lessor served them with a notice of termination of the leases and demanded the airplanes to be surrendered. 

In an attempt to continue its normal operation and retain its five Bombardier Q400 turbopops, Island Air filed for Chapter 11 bankruptcy protection. Three of the planes are leased from Elix Aviation Capital. 

Operating under the protection of the US Bankruptcy Court means that Island Air will be able to maintain its service to its customers, provide continued employment to its more than 400 employees and ensure that its vendors are paid. 

The company has been undergoing internal improvements in the field of IT operations, customer services and fleet renovation since it was bought by two Hawaii-based investment companies—PaCap Aviation Finance LLC and Malama Investments in January 2016. Its owner, Ohana Airline Holdings, retains a non-controlling interest in the company.