Island Air (Hawaii) (Honolulu) owner Larry Ellison is in talks with an undisclosed investment firm concerning the proposed sale of the loss-making airline.
Hawaii News Now says the move comes after Ellison rejected a second offer for his airline from former Hawaiian Airlines (HA, Honolulu) CEOs Bruce Nobles and Paul Casey.
The co-founder of IT giant Oracle, Ellison acquired Island Air in 2013 from Gavarnie Holding LLC for an undisclosed sum. Since then, however, the carrier has struggled to compete with larger rival Hawaiian and its Ohana by Hawaiian island-hopping unit.
In May last year, Island Air announced a cost-cutting programme dramatically reducing its timetable while laying off staff and deferring orders for two Dash 8-400s along with options for a further four.