Mokulele in Default; Republic May Take Over Service
Updated 2/18: Mokulele president Bill Boyer indicated this morning that the $300K payment due Republic was being made today.
Republic Airways announced in an earnings statement this morning that their Hawaii partner Mokulele Airlines has drawn down its entire $8 Million line of credit and is in default on payments thereon. If the matter isn’t rectified, Republic indicated that they could seize their planes and other assets as soon as tomorrow.
Later today I learned that Mokulele employees, who seem more like family than employees, have agreed to defer salary until next week in order for Mokulele to meet their debt service obligation to Republic.
Lastly, an email I just received from Mokulele’s PR firm, which originated from Scott Durgin, VP at Republic, said:
“…We hope the current owners will be successful in their efforts to recapitalize the airline but if not Republic will assume responsibility for the continuation of jet service.
The resolution of the financial arrangements of the agreement between Republic and Mokulele will in no way impact scheduled services.
Republic is pleased at the high marks Mokulele has earned from those who have flown the jet services since its introduction in November 2008. Continued and increased support from the local community will help ensure Mokulele’s continuing success and the preservation of what we believe to be an indispensable option for inter-island travel.”
We wish Mokulele and its employees, as well as Republic, the very best as this matter is hopefully resolved to everyone’s benefit.
What does this mean for the customer? I have a one way flight booked for mokulele in march and was looking to book another round trip (ogg-koa) in april? (mokulele was substantially cheaper than other carriers for both flights) Am I going to lose my money on the flight already booked? Should I look elsewhere for the second? any info would help!
As I quoted from Mokulele above:
“…If not Republic will assume responsibility for the continuation of jet service.”
I fully believe that Republic, which is Mesa (Go!)’s competitor, is in our Hawaii market for the long term.
As a Republic inflight crew member for years now, I can surely say that one thing is for sure, our CEO doesn’t like to throw in the towel. I am sure that you will be taken care of no matter what happens