The United States Department of Transportation (DOT) has selected Mokulele Airlines (MHO, Kona) to continue providing Essential Air Services (EAS) at Lanai City in Hawaii for four more years, until August 2030.
According to a regulatory filing, the Surf Air subsidiary will operate 63 weekly round trips from Lanai, including 42 to Honolulu and 21 to Kahului on Maui, using nine-seater Cessna (single turboprop) C-208 Caravans. The new contract period started on September 1, 2026.
Mokulele will receive an annual subsidy of USD4.68 million in the first year, rising to USD5.04 million in the fourth year. The total four-year compensation is almost USD11 million. The decision follows Mokulele's existing two-year EAS contract, under which it has operated the same 63 weekly round trips for an annual subsidy of USD4.07 million.
The Hawaii-based carrier's proposal was 36% lower than a competing bid submitted by Cape Air, which called for USD6.99 million in the first year and USD8.21 million in the fourth. Cape Air offered a similar schedule but using nine-seater Tecnam P2012 travellers or Cessna (twin piston) 402 aircraft.
Another candidate, Pacific Air Charters, had lower subsidy requirements but less experience with scheduled services and no interline or codeshare arrangements with larger carriers serving Honolulu or Kahului.
The DOT said Mokulele's established presence in Hawaii, operational experience at Lanai, interline agreements with major airlines, marketing plan, and stronger community support made its proposal the best overall fit.
