History and future developments

Winner of the 2021 North American Design Competition, Group 2 (http://www.airline-e...ition/?p=288467)

2000s: Beginnings as FlyHawaii Airlines

Iluna's origins trace back to 2005 when Lion Coffee founder James Delano proposed a new carrier under the name FlyHawaii Airlines, which would have operated low-fare inter-island services within Hawaii. Operations were slated to commence in late 2005 or early 2006 with an initial fleet of four to five ATR 72 turboprop aircraft carrying up to 68 passengers each in a standard all-economy cabin. FlyHawaii hoped to succeed where predecessors such as Discovery Airways and Mahalo Air had failed by following the blueprint of low-cost carriers like Southwest Airlines and JetBlue Airways, both of which offer frequent flights and rely on Internet bookings. The airline planned to charge fares in the $50 to $60 range.

Following the September 2005 announcement by Mesa Air Group that it intended to start its own inter-island carrier, go!, using 50-seat jet aircraft, its primary investor, a group that included America Online founder Steve Case, decided against buying into the carrier. After the Chapter 11 bankruptcy of Aloha Airlines, the market for a second major Hawaiian carrier proved too weak to justify FlyHawaii’s commencement of operations, and in late November 2005 the airline laid off its staff and shut down. Though the company itself was no longer in business, its air operator’s certificate (AOC) would still remain active.

2020s: Rebirth as Iluna

In mid-2019, FlyHawaii’s AOC was acquired by a new team of investors led by former Sun Country Airlines CEO Zarir Erani with the intent to restart operations under a revised business model in mid- to late 2020 as Iluna Aviation Incorporated (the name “Iluna” is derived from the Hawaiian words i luna meaning “upward”). Originally planned to commence operations in the second quarter of 2020, the onslaught of the COVID-19 pandemic forced the airline to delay its debut until September 13, 2021, when its first flight from Honolulu to Kahului was launched with an ex-Air New Zealand ATR 72-500. The airline also seeks a future expansion of its operations to the western continental U.S. in mid-2022 to 2023. Flights to the U.S. mainland would be operated with extended-range Airbus A321LR aircraft, while inter-island flights would be flown by lower-range Airbus A320 and ATR 72 aircraft.

Current fleet as of October 2021

2x ATR 72 (both ex-Air NZ aircraft; former regs ZK-MCJ [pictured] and ZK-MCU)