Island Air carrier files for Chapter 11 bankruptcy

An aircraft carrier in another state recently decided to file for bankruptcy protection. The Chapter 11 bankruptcy protection was sought with the goal of helping the company, known as Island Air, to continue its normal operations while dealing with some legal troubles involving its aircraft lessors. This type of bankruptcy protection can be helpful for companies in Massachusetts and elsewhere that are facing overwhelming financial and legal problems.

In the case of Island Air, the company said it had been working on negotiating leases for its aircraft with the company’s lessors. However, the lessors suddenly served the company on a recent Thursday with notices regarding the termination of the leases. In these notices, the lessors demanded that the airplanes be surrendered.

According to the aircraft carrier, the company filed for bankruptcy protection due to the lessors’ threat to ground the planes and thus leave hundreds of passengers stranded. The bankruptcy filing prevents this threatened action from taking place and enables the company to keep providing service to customers. In addition, it will be able to continue employing its over 400 employees and maintain a stream of revenue so that it can keep paying its vendors.

With Chapter 11 bankruptcy protection, struggling businesses can take advantage of the opportunity to reorganize themselves and emerge as stronger companies with more stable financial structures. As a result, they may be better positioned for expansion and growth in the future. An attorney in Massachusetts can offer guidance during each stage of the often complicated Chapter 11 bankruptcy filing process.

Source:, “Hawaii’s Island Air files for Chapter 11 bankruptcy protection”, Mark Nensel, Oct. 17, 2017