Ellison IslandEllison Island
Billionsaire Ellison sells Iceland Ari
There are 2 airlines for hire between the islands. The second offer from former CEO Bruce Nobles and Paul Casey was declined by Ellison, a resource acquainted with the deed. Mr Casey is also a former CEO of Island Air. "I am not suprised that Larry Ellison's men would consider to sell Iceland Air because their strategies did not work," said aviation history expert Peter Forman.
Ellison, who co-founded Oracle Corp., purchased Island Air in 2013 to increase air travel to the island of Lanai, which heowned. At the beginning of the year, Island Air cancelled its Kauai flights and reduced its wage bill by around 20 per cent. Iceland Air currently has five ATR 72 turboprop aircraft with 64 seats, which according to expert opinion are too small to be able to rival the dominating airline Hawaiian Airlines.
"You want a tight internal turbo-prop with very little room or you want to get on a confortable jet," said Scott Hamilton, an aviation analysis firm at Leeham Co. of Issaquah, Wash. Island Air was established in 1980 as Princeville Airways and has about 250 employees.
Larry Ellison sells Hawaii's Island Air to Investment Group
The billionaire Larry Ellison hands over Iceland Air to a group of investors led by a Hawaii adventure bank. Iceland Air announced on Wednesday that two subsidiaries of Honolulu-based PacifiCap, led by Jeffrey Au, are to acquire a majority stake in Hawaii's third biggest carrier. Ellison's Ohana Airlines Holdings LLC purchased Island Air from Charlie Willis of San Francisco, Gavarnie Holding LLC in February 2013.
Ellison purchased the business for an unknown cost less than a year after the purchase of about 98 per cent of Lanai Island for a reported 300 million dollars. ellison will maintain a minority stake and will maintain its cooperation with the new owners while Island Air pursues its growth strategy.
In the past year, Island Air announces that it will cut 20 per cent of its staff, reduce services and delay the introduction of a new aircraft charterer. from Honolulu to Maui and Maui to Lanai. Iceland Air transported 19,946 people in September, according to the latest DOT poll. Revenues of $5.5 million in the third three months were the smallest since Ellison acquired the business.
"We realized that dedicated land would be in Island Air's long-term interests and are delighted that such a prestigious group of investors as PacifiCap, deeply rooted in Hawaii, is now taking the helm," said Paul Marinelli, Chairman of Island Air.