Beat of Hawaii

Cheap Flights to Hawaii

  • Home
  • Deals
  • Cheapest Time to Fly
  • Win Free Trips
  • Southwest
    • Latest Updates: SWA Hawaii
    • Southwest Hawaii Deals
    • Southwest Inter-Island Flights
    • Southwest vs. Hawaiian
  • Categories
    • Hawaii Deals
    • Hawaii Airline News
    • Travel Tips
    • Culture and Events
  • Top Picks
    • 10 Ways to Save on Hawaii Car Rentals
    • Free/Cheap Parking Waikiki
    • Jellyfish Warnings 2019
    • Frugal Hawaii | 15 Ways To Save
    • Hawaii Sunscreen | New Law + Health and Safety Updates
  • Kudos

Island of Lanai Owner Larry Ellison buys Island Air

January 18, 2013 by Beat of Hawaii

Shipwreck Lanai | Beat of Hawaii

Billionaire Larry Ellison, owner of the island of Lanai, is said to now be buying Island Air. The troubled carrier announced last week that it was being purchased by a then unnamed entity, which it indicated was not another airline. Honolulu newspapers are reporting that unidentified sources have now confirmed the buyer as Ellison. Making that all the more plausible  the former CEO of Island air has become an executive of Lanai Resorts.

Our thought is that this acquisition allows Ellison to control future service to his newly acquired Hawaiian island and keep Island Air from potentially going out of business. It also offers the opportunity to create Hawaii package deals for his Lanai luxury hotel guests with reduced or included airfares.

Island Air and Hawaiian Air Competition

Relative behemoth Hawaiian Air is at the same time gearing up to compete head on with Island Air. Hawaiian has purchased ATR-42 aircraft and soon plans to operate a subsidiary which will offer service to popular resort destinations on West Maui and Lanai, as well as to Molokai. Hawaiian has its advantage with visitors, offering brand recognition, with through ticketing and service from and to the mainland. Ellison’s advantage relates to his island and hotel ownership.

Island Air has faced continual decline in demand in this fast changing and ever competitive Hawaii airline marketplace. Their traffic dropped 21% last year to 241,000 passengers, and has been down five of the past six years.

Ellison’s Lanai

The CEO of Oracle bought the small island of Lanai in 2012 from Castle & Cook at a price said to be about one-half billion dollars. The 3,000 resident island with its two world-class Four Seasons Hawaii resorts, features only 30 miles of paved roads on 141 square miles of land. Ellison plans to turn Lanai into an eco-friendly agricultural island.

Shipwreck Beach Lanai

This Beat of Hawaii photo was taken at Kaiolohia or Shipwreck Beach on Lanai. The ship is the 75 year old remains of an oil tanker which to this day is stuck on the coral reef off the eight mile long beach. It is located about 30 minutes from Lanai City, and is reached by 4WD.



View all recent Hawaii Travel Deals.


Vip Alerts

 

Disclosure: We receive a small commission on purchases from some of the links on Beat of Hawaii. These links cost you nothing and provide income necessary to offer our website to you. Mahalo! Privacy Policy and Disclosures.

Filed Under: Hawaii Airline News

Subscribe for Hawaii Deal Updates

Subscribe to Free Hawaii Deal Emails

  • Discount Hawaii Car Rental
  • Southwest Hawaii Vacations
  • VRBO
  • Insure My Trip
  • The Parrish Collection Kauai

In Case You Missed It

  • Southwest Hawaii Update
    Southwest Hawaii | Summer Deals + Perhaps Basic Economy
  • Win a Free Trip to Hawaii Sweepstakes
    25 Tips to Get a Discount Hawaii Car Rental in 2020
  • Hawaii Weather
    Hawaii Weather | 2020 Vacation Planning
  • Christmas in Hawaii
    Christmas in Hawaii | Deals | Free Trips
  • Win A Free Trip to Hawaii Sweepstakes
    December Win a Free Trip to Hawaii Sweepstakes
  • Cyber Monday Hawaii Deals
    Cyber Monday Hawaii Deals Are On
Home » News » Hawaii Airline News » Island of Lanai Owner Larry Ellison buys Island Air
  • Home
  • About
  • Contact
  • Subscribe
  • Facebook
  • Privacy Policy and Disclosures

Copyright © 2019 · Beat Of Hawaii. All Rights Reserved.

sponsored
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkRead more