The appeals court left it to the district court to determine whether Ohana and the Ellison Trust’s employer status may be decided as a matter of law or must be submitted to a jury.
Following the bankruptcy filing of Hawaii Island Air, the Ninth Circuit affirmed a district court’s ruling that the owners of two-thirds of the airline’s stock—the Au Defendants—were an “employer” under Hawaii’s Dislocated Workers Act. However, the appeals court reversed the lower court’s rulings as to employer status of Ohana and the Ellison Trust’s. Ellison exercised substantial financial leverage over the airline through loans, and airline leases, and could effectively dictate key operational decisions. With respect to WARN Act claims, the appeals court concluded that the district court did not abuse its discretion by amending the judgment and granting relief to Au, since it was unclear whether Au was properly named as a defendant in the complaint. Judge Forrest filed a separate dissenting opinion (In re Hawaii Island Air, Inc., Nos. 24-3683, 24-6024, 24-6026, 24-6290 and 24-6345 (9th Cir. Sept. 29, 2026)).
Airline finances. Hawaii Island Air, Inc., operated in Hawaii’s interisland market for nearly 21 years. In February 2013, the Lawrence J. Ellison Revocable Trust acquired Island Air through Ohana Airline Holdings, LLC (Ohana), an entity created for that purpose. Ohana sat within a web of Ellison-affiliated entities.
Under Ellison’s ownership, Island Air experienced substantial losses. In...
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