The U.S. Department of Transportation is reviewing bids from Mokulele Airlines, Pacific Air Charters, and Cape Air to provide federally subsidized essential air service to Lanai. The new contract term begins September 1, 2026.
- Mokulele Airlines, the current sole commercial carrier to Lanai, is defending its contract against two challengers: Hawaii-based Pacific Air Charters and Massachusetts-based Cape Air.
- Maui Mayor Richard Bissen has shifted his support from Mokulele to Pacific Air Charters since the last bidding round in 2024.
- Pacific Air Charters has never operated scheduled service before, though the company argues its local Hawaii ownership sets it apart.
- Mokulele has invested over $22 million in its Hawaii network since the last contract bid and claims a 98% flight completion rate.
- The DOT is expected to award the contract before the new term begins September 1, 2026.
Source: Hawaii News Now
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