Ohana Airline Holdings, LLC (OAH) has announced plans to sell a controlling stake in its Island Air (Hawaii) (WP, Honolulu) unit to PacifiCap, a Hawaii-based venture capital firm managed by PaCap Aviation Finance, LLC and Malama Investments, LLC. Under the deal, OAH will retain a non-controlling interest in the airline.

The sale, subject to US Department of Transportation approval, will allow for the airline's recapitalization and restructuring thus providing for its return to profitability. Among the objectives outlined is the expansion of inter-island services through the acquisition of additional ATR72 aircraft.

“We are thrilled with the opportunity to partner with Mr. Ellison and his team to create a strong second airline for Hawaii,” PacifiCap founder and Managing Director Jeffrey Au said. “Like Hawaii itself, we may not be big, but we can be great. We believe that having local owners and managers will allow us to provide the kind of reliability, seat availability and service that our fellow kama‘aina deserve.”

To ensure business continuity, a transition team comprised of PacifiCap’s Jeffrey Au, Island Air CEO Dave Pflieger, and former Island Air executive Les Murashige will ready the airline for its next chapter.