Pacific Air Charters’ Planned Commuter Flights in Doubt

The US Federal Aviation Administration plans to reject an application by Honolulu-based Pacific Air Charters for authority to operate as a commuter airline after its promotor and president, Lynn Marshall Ashley, failed to adequately address a series of queries raised by the FAA.

In June 2024, Pacific Air Charters applied for the authorisation so it could tender to operate subsidised inter-island essential air services, specifically between Lana'i Airport (LNY) and Honolulu (HNL) and Lana’i and Kahului Airport (OGG) using nine-passenger Tecnam P2012 Travellers.

That tender has now come and gone, but Pacific Air Charters is pursuing its commuter authority to operate other scheduled services around Hawai’i. Since 2006, the airline has held Part 135 certification that allows it to operate on-demand air charters. However, current operations are conducted only under Part 91, including an on-going contract with the United States Marine Corp.

FAA raises financial and foreign influence concerns

Since the initial application, the FAA has repeatedly come back to Pacific Air Charters and Ashley seeking additional information, most recently in April 2025. The FAA raised concerns about the Pacific Air Charters' financial capacity and foreign interests could exert “substantial influence” over the airline and its management “considering the close personal relationships, significant funding, and undocumented and informal agreements between Pacific Air Charters and its foreign minority investor.”

That minority investor is Laulii Alofa, who has a 25% shareholding in the airline. Alofa was born in American Samoa and is a US national but not a US citizen. Alofa is married to Wanda Alofa, who owns the remaining 75% of Pacific Air Charters and is a US citizen.

The Alofas are also trying to start up an airline in American Samoa called Pago Wings, also operating scheduled Tecnam P2012 flights and also struggling to close the authorisation process. Ashley describes the relationship between Pacific Air Charters and Pago Wings as “brother-sister.”

Pacific Air Charters responds

On May 15, 2025, Ashley responded to the FAA’s earlier queries with the following financial and operational information:

- Pacific Air Charters will assume USD3.8 million of existing debt and issue USD8 million of non-voting preferred stock to the Alofas.

- Any financial contributions from the Alofa's other companies, American Samoa-based Paramount Builders and Pago Wings, would be documented as capital contributions and carry no repayment obligations.

- Five Tecnam P2012s would be transferred from Pago Wings to Pacific Air Charters. The combined value of those aircraft is around USD12 million.

- One aircraft would be sold to Aerospring Leasing LLC and leased back, reducing existing debt by around USD1.8 million. Aerospring will also be the source of any additional aircraft in the future.

- Discussions are underway with an undisclosed US bank about financing additional aircraft.

- Pacific Air Charters will issue 20% of the total voting stock in the company to Ashley. That will see Wanda Alofa’s voting stock drop to 60% and Laulii Alofa’s voting stock drop to 20%.

- The airline also states that the Alofas have no involvement in the day-to-day running of Pacific Air Charters, leaving Ashley in charge.

- Finally, Pacific Air Charters said it could not provide the FAA with an updated financial forecast since the essential air service tenders had elapsed, and it had yet to determine the markets it would serve as a commuter air carrier.

FAA not satisfied with the answers

But the Federal Aviation Administration was not happy with this. In a June 10 response obtained by Aero South Pacific, the agency said the airline had not adequately addressed:

- The close personal relationships, significant funding, and undocumented and informal agreements between Pacific Air Charters and its foreign minority investor.

- The potential for foreign interests to exert substantial influence over Pacific Air Charters and its key personnel and 

- The fact that Wanda Alofa, the US citizen majority shareholder, lacks aviation or managerial experience and is not involved in Pacific Air Charters' day-to-day operations.

“Furthermore, Pacific Air Charters has not clarified whether Mr Ashley has provided, or will provide, any financial consideration in exchange for a 20% ownership interest in the company, nor has the company submitted any documentation evidencing the terms of the proposed change in ownership,” the FAA said. “Without this information, the department is unable to determine whether Pacific Air Charters is under the ownership and control of US citizens.”

It was also critical of Pacific Air Charters' failure to identify the markets it intended to serve and its failure to provide updated pre-operating and first-year expense forecasts for its proposed operations. These are the normal requirements for any US commuter authority application.

“The department is unable to assess the amount of funding Pacific Air Charters will require or evaluate its ability to meet the department’s financial fitness test,” the FAA says.

FAA proposes to reject application

The FAA says it will reject the commuter authority application unless Pacific Air Charters satisfactorily addresses the issues raised by June 24.

It says it wants a defined operational plan, corresponding financial projections, and evidence of financial resources, including third-party verification of funds.

“Processing and maintaining incomplete applications hinders the department’s ability to address filings from companies that have submitted completed applications and are ready to move forward,” the FAA says.

You can read the June 10 letter from the FAA to Pacific Air Charters here.

Photo: Tecnam