Perhaps the greatest victim in the fierce air wars between Hawaiian, Aloha and Mesa's go! operation, is Honololu-based, inter-island carrier Island Airways which has been forced to restructure. The airline, which tried its best to stay out of the fray, is adjusting its operations by cutting unnecessary costs and reducing workforce, aircraft and routes.

Some 65 full-time employees from all departments, including management, are either being furloughed or laid off as the airline removes two of its eight 37-seat de Havilland Dash 8s from service along with five routes. Dropped routes include Honolulu to Lihu'e, Kona to Lihu'e, Kahului to Kapalua, Kapalua to Lihu'e, and Kapalua to Kona. It will continue its 12 individual routes which call in at Oahu (Honolulu International Airport), Maui (Kahului Airport and West Maui's Kapalua Airport), Moloka'i (Ho'olehua Airport), Lana'i (Lana'i City Airport), Kaua'i (Lihu'e Airport) Island (Hilo International Airport and Kona International Airport). It will now offer 75 daily flights.