Island Air going out of business

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Island Air will be shutting down operations tomorrow on Saturday, November 11.

Hawaiian Airlines says it will be honoring Island Air tickets to accommodate those passengers affected by the shut down. And if you bought a ticket with a credit card, you can likely receive a refund.

Last month, Island Air in Hawaii, says it was forced to file for Chapter 11 bankruptcy protection after the lessors served notices of termination of the leases, and demanded that Island Air surrender its new fleet of Bombardier Q400 turbo-prop airplanes. 

Island Air has been in bankruptcy court since then, but says the legal attacks make it difficult to find new investors or lender to provide additional funding. Island Air passengers say they are shocked and saddened by the news.

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