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Island Air Files for Chapter 11 Bankruptcy [Last Day of Operations is Nov 10, 2017]

Island Air Files for Chapter 11 Bankruptcy [Last Day of Operations is Nov 10, 2017]

Old Dec 2, 2017, 12:57 pm
  #16  
 
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Hilarious story here - So, I'm a brand new member of this forum and wasn't aware that IA had filed for Chapter 11 when I was booking a trip to the islands recently. So on 10/25, I purchased two round-trip OGG-HNL tickets for 11/25. Total cost $394. We show up at the airport on that date and couldn't find the IA check-in desk to save our lives. Finally we approach an Alaskan rep and she looks at me with this pitying frown and says, "Oh honey, they shut down." "They what?!" I said. She responds, "Yeah, they just ran out of money." I couldn't believe it. They didn't even bother to send an email to current ticket holders. Sigh. So I booked online on HA for double the original cost filed a Reg E claim.

Last edited by FlyinHawaiian; Dec 2, 2017 at 5:26 pm Reason: Profanity is not allowed on this site
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Old Dec 2, 2017, 3:21 pm
  #17  
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Most US CC issuers will honor a chargeback dispute based on complete failure to provide service even if the 60 days have passed. During the first 60 days, you have a statutory right to have your chargeback granted when an air carrier is unable to operate as the result of bankruptcy. After that, you do not have a statutory right, but this is where having a better card matters.
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Old Dec 14, 2017, 6:57 pm
  #18  
 
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I had filed a DOT complaint against WN for luggage damage - they broke off a piece of my suitcase on a HNL-LIH flight last April and claimed it was "cosmetic" and that they were not liable.

With the bankruptcy, I guess my chances of restitution for the bag damage are somewhere between zero and none?
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Old Dec 18, 2017, 9:08 am
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Originally Posted by transportprof

With the bankruptcy, I guess my chances of restitution for the bag damage are somewhere between zero and none?
Correct
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Old Dec 18, 2017, 11:20 am
  #20  
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WN? It most certainly is not bankrupt.

If you meant WP, you are correct. Even if WP acknowledged that it owes you the money, all you would have is an unsecured claim and, while it is always possible that there is a bit left over at the end for the unsecured creditors, a penny or two on the dollar isn't going to do much for you. But, with WP in BR, it could care less what DOT thinks, says, or does.

If you haven't blown the deadline for an insurance claim, file the claim now after reading your policy to make sure that the BR doesn't cause the claim to be denied.
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Old Dec 19, 2017, 4:50 pm
  #21  
 
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Hawaiian Airlines has agreed to purchase the Island Air operating certificate and other assets. If approved, the case will be converted back to Chapter 11 reorganization with HAL acquiring shares in what would essentially be a new shell company.

Hawaiian hasn't yet stated (announcement expected "shortly") on what Hawaiian intends to do with the certificate; my guess is that they will move the Ohana operation in-house under the Island Air certificate, rather than continuing to contract out the operation to Empire. IIRC Hawaiian owns the Ohana ATRs.

Star-Advertiser link (possible paywall): Hawaiian Airlines? parent to buy bankrupt Island Air?s assets for $750,000
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Old Dec 19, 2017, 4:57 pm
  #22  
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Originally Posted by Hawaiian717
Hawaiian Airlines has agreed to purchase the Island Air operating certificate and other assets. If approved, the case will be converted back to Chapter 11 reorganization with HAL acquiring shares in what would essentially be a new shell company.

Hawaiian hasn't yet stated (announcement expected "shortly") on what Hawaiian intends to do with the certificate; my guess is that they will move the Ohana operation in-house under the Island Air certificate, rather than continuing to contract out the operation to Empire. IIRC Hawaiian owns the Ohana ATRs.

Star-Advertiser link (possible paywall): Hawaiian Airlines? parent to buy bankrupt Island Air?s assets for $750,000
Very interesting, indeed! Agree with your guess...hopefully some former Island Air employees will be hired at the new company.
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Old Dec 19, 2017, 8:29 pm
  #23  
 
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Originally Posted by formeraa
Very interesting, indeed! Agree with your guess...hopefully some former Island Air employees will be hired at the new company.
The article was updated with a quote from a Hawaiian exec confirming that the plan is to use the Island Air cert to bring the Ohana flying in-house.
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Old Dec 22, 2017, 1:08 am
  #24  
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Interesting and logical development.

Thanks for sharing.
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