Back in 1980, Princeville Airways was incorporated by Colorado-based Consolidated Oil and Gas as a subsidiary, beginning scheduled service between Honolulu and Princeville, on Kaua’i, with two DHC-6 Twin Otter aircraft.
By early 1987, the fleet had grown to eight Twin Otters, and the network was extended to small community destinations on other islands.
In May, 1987, Aloha Airgroup, Aloha Airlines’ parent company, purchased Princeville Airways, renaming it Aloha Island Air soon after that.
In 1992, the company changed its name to “Island Air,” and received its FAA “Part 121” certification three years later, introducing Dash 8 aircraft into its fleet.
In May, 2004, Islan Air became Hawaii’s third independent airline, after being purchased from Aloha Airgroup by Gavarnie Holding, LLC, a family-owned company.
In March, 2006, Island Air received DOT approval to offer large carrier aircraft with over 66 seat.
In 2007, the company had 400 employees.
In 2010, Island Air, Hawaii’s second oldest carrier, celebrated its 30th anniversary.
In February 2013, Island Air was purchased by Ohana Airline Holdings, LLC and began its fleet conversion upon receiving FAA certification to operate 64-seat ATR-72 aircraft.
In January 2016, Ohana Airline Holdings announced plans to sell a controlling interest in Island Air to Malama Investments and PaCap Aviation Finance, two Hawaii investor groups managed by PacifiCap and Jeffrey Au. The sale was approved by the U.S. Department of Transportation in February.
In 2016, Island Air continues to improve its operations and expand its presence in the community by restoring service to Kauai beginning March (after suspending flights in June 2015) and restarting Honolulu-Kona service in June. However, Island Air ended service to Lanai at the end of March 2016.
No deadly incidents involving Islan Air aircraft have been recorded so far.
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