Aloha Airlines Files For Bankruptcy

[Parche]

Aloha Files for Chapter 11 Bankruptcy Protection
Published on: March 24, 2008 -- advertisement --



Aloha Airgroup, whose principal operating subsidiary is Aloha Airlines, Inc., late Thursday filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code. Aloha will seek court approval to allow it to continue operating. Aloha also is seeking court approval of a cash collateral financing arrangement with its principal working capital lender, General Motors Acceptance Corporation, to provide financing for operations pending a further hearing in accordance with bankruptcy rules. In doing so, Aloha said it seeks to protect 3,500 jobs, honor thousands of passenger travel reservations, keep the U.S. mail and air cargo moving between the islands, and continue to provide essential ground-handling services for domestic and international airlines serving Hawaii. In its filing, Aloha cited an inability to generate sufficient revenues from its inter-island passenger business due to predatory pricing by Mesa Air Group's go! airline. In the highly competitive inter-island market, Aloha said it was forced to match go!'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel. Late last week, crude oil rose to an all-time record high of $111 a barrel. For Aloha, that means an annual increase of $71 million in fuel expenses. Aloha also said it was in discussions to sell all or part of the company. For more information, visit www.alohaairlines.com.


Another victim of the Bush oil policy

[SoFlaJet]

1. After Don Ho died

it has been downhill ever since-(I think he used to do their ads)

[mr_hat]

2. Tiny stress fractures...

[Not Me]

3. Having one of their plane's doors blow out

in flight and sucking one of the flight attendant's out was a tough one to get over.

http://starbulletin.com/2005/12/22/features/story05.html

[DemoTex]

5. Not a door .. it was 1/3 of the B-737s upper fuselage.

I attended the ALPA awards ceremony for the pilots of Aloha 243, Captain Robert Shornstheimer and First Officer Madeline "Mimi" Tompkins. I'm sorry to hear of Aloha's troubles. The first thing to go in Chapter 11 will be pilots' pension. I know, because my pension was terminated during my airline's Chapter 11 hearing by a Federal Bankruptcy judge .. then my CEO bailed with a $10-million parachute.

[dkf]

4. The air fare wars with Go! Airlines did them in.

$29 dollars one way when it used to be $120 round trip.

And on top of that rising fuel costs.

[keopeli]

6. The airline market in Hawaii has never been able to tolerate 3 rivals

probably because there is a finite number of potential travelers on any given day between the islands.

Fares skyrocketed in recent years until rival Go! airlines came in about a year ago. With an abundance of capitol, fares dropped from about $150 to a mere $19 round trip! Go! airlines did this to beat down the competition and it worked. It's no surprise that Aloha has gone bankrupt. They will be lucky to stay alive.

All 3 airlines are suffering, but Go! did this to take over. The prices can not stay low.

Plus, the new SuperFerry is taking market share away as well, but the airlines are lobbying hard to shut down the SuperFerry. Competition right now is fierce. We'll see who will survive.

[Parche]

7. Aloha

And their intra island fleet is still the old 737-200, their mainland service is the new 737-800/900

Hawaiian flies the 717 intra island ( I fly that on my flightsimulator, a joy to fly)

The 737-200 is very old now and maintenance and fuel costs are high, as it is not fuel efficient anymore, compared to the new jets, they need to replace with probably Dash 8's or similar.

:hi: