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The Honolulu Advertiser

Updated at 4:21 p.m., Friday, December 1, 2006

Island Air lays off 65 workers, blames fare war

Advertiser Staff

Island Air said it will lay off 65 of its 350 full-time employees and will eliminate five of its 17 interisland routes effective today.

The local interisland carrier blamed the interisland fare war, which was triggered by the June 9 launch of Mesa Air Group Inc.'s go! airlines.

"These were tough but necessary decisions required to ensure our prosperity moving forward," said Rob Mauracher, Island Air's chief executive officer.