Island Air has decided to relinquish the Midwest Essential Air Service (EAS) Contract that was awarded on May 5th by the U.S. Department of Transportation.

"The abrupt announcement by Air Midwest, a subsidiary of Mesa Airlines, to end service on June 30, 2008 is a cause of great concern for the communities of Grand Island, NE, Harrison and Hot Springs, AR, and Joplin, MO. Island Air understands the sense of urgency within these communities for uninterrupted air service," said Les Murashige, COO.

"The initial Midwest EAS bid was submitted in early March and the contract was awarded in May.

Hawaii experienced a major disruption of air service with the departure of Aloha Airlines on April 1. Since then, we have been carefully reviewing operational logistics and the changes in the Hawaii market. Identifying and training key personnel and the rising costs of fuel have been major considerations for the Midwest operation.

After careful analysis, we have concluded that a Midwest startup date of mid-September is unrealistic. Since time is of the essence for the Midwest communities, it is with a heavy heart that Island Air relinquishes the awarded EAS Contract so that it may be redirected and awarded to an airline that can commence service within their desired time frame.

Island Air still hopes to have other opportunities to bid for an EAS Contract but for now, we will focus on our local market.

In response to increased market demands Island Air has added flights in the common markets to include Honolulu-Lihue, Honolulu-Maui and added additional flights between Maui-Kona and Maui-Lihue."

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