Inter Island Airways (Pago Pago) is set to lose its certificates of authority after the US Department of Transportation (DOT), in concert with the US Federal Aviation Administration (FAA), deemed the airline to have ceased operations as defined under the Code of Federal Regulations.

In a letter to the American Samoa-based carrier issued last week, the DOT said that as Inter Island Airways had not operated any aircraft for over three years, its authority to conduct scheduled passenger services as a commuter air carrier would now be revoked.

"More than a year has elapsed since Inter Island has conducted scheduled passenger operations as a commuter air carrier and it has not requested that the Department reestablish its fitness to recommence commuter operations," the letter signed by the Chief of the DOT's Air Carrier Fitness Division, Lauralyn J. Remo, said. "Consequently, we intend to issue an order revoking Inter Island's commuter air carrier authorization for reason of dormancy."

Since it suspended operations in late 2014, Inter Island Airways has been planning to resume direct flights between Pago Pago and Ofu, and between Ofu and Tau Islands using Beech (twin turboprop) King Air E90s, BN-2s, and DHC-6 aircraft that operate under the Manu'a Airways (Pago Pago) brand. However, as noted by the DOT, no services have launched to date.

Likewise, it has repeatedly claimed its Inter Island Airways Fiji (Suva) unit will launch domestic Fijian flights despite the island's Air Transport Licensing Board (ATLB) refusing to renew its Air Services Licence in 2014. At the time, the ATLB cited a lack of progress made with the airline's AOC.