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  • Aloha Air files bankruptcy, again

    Breaking news from the Advertiser at this link:
    Aloha Airlines filed for bankruptcy protection today for the second time in just over three years.
    The state's No. 2 carrier filed for Chapter 11 reorganization with the U.S. Bankruptcy Court in Honolulu.
    Aloha has been hurt recently by low-interisland airfares and high fuel costs.
    The airline said it hopes to protect the jobs of its 3,500 employees, honor all travel reservations and keep air cargo moving between the Islands.
    In its filing, Aloha said it wasn't making enough money off inter-island routes because of "predatory pricing by Mesa Air Group's go! airline."
    "In the highly competitive inter-island market, Aloha 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," the company said
    "It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action," said David A. Banmiller, Aloha's president and CEO, in a statement. "Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for Aloha, and to continue to earn the support of our loyal customers, business partners, vendors and financial backers."
    Aloha said it will seek the court's approval to continue operating with financing from its principal working capital lender, General Motors Acceptance Corp.
    (...)
    The story is also on the Star-Bulletin's site at this link.

    DISCLAIMER: I take no glee at reporting this news, nor do I consider it a coup to have been the first to post it.
    .
    .

    That's my story, and I'm sticking to it.

  • #2
    Re: Aloha Air files bankruptcy, again

    I take it that Go! doesn't do a cargo service like Aloha and Hawaiian do?

    Comment


    • #3
      Re: Aloha Air files bankruptcy, again

      Originally posted by helen View Post
      I take it that Go! doesn't do a cargo service like Aloha and Hawaiian do?
      Not yet anyway.
      Life is what you make of it...so please read the instructions carefully.

      Comment


      • #4
        Re: Aloha Air files bankruptcy, again

        At this point, just let Aloha shut down. Not being mean but isn't it better to have a stronger Hawaiian Air and Island Air that could possible absorb some of these experienced workers than to have three weak airlines limping along? go! played a role in the demise but I don't buy blaming them 100% for Aloha's problem. I've always said, they haven't done squat to cut fuel consumption with those old gas guzzlers.

        Comment


        • #5
          Re: Aloha Air files bankruptcy, again

          Originally posted by LikaNui View Post
          DISCLAIMER: I take no glee at reporting this news, nor do I consider it a coup to have been the first to post it.
          No glee? Hmmm, I sense a little schadenfreude in the way you wrote "breaking news".







          What can be asserted without proof can be dismissed without proof. – Christopher Hitchens

          Comment


          • #6
            Re: Aloha Air files bankruptcy, again

            Originally posted by joshuatree View Post
            At this point, just let Aloha shut down. Not being mean but isn't it better to have a stronger Hawaiian Air and Island Air that could possible absorb some of these experienced workers than to have three weak airlines limping along? go! played a role in the demise but I don't buy blaming them 100% for Aloha's problem. I've always said, they haven't done squat to cut fuel consumption with those old gas guzzlers.
            Restructuring Aloha Airlines is actually the best thing to do at this time.

            Because of the way that the Chapter 11 reorganization bankruptcy works, Aloha Airlines will be controlled for the time being by a judge who will be able to affect changes in policy and company organization much quicker. The idea being that with a singular body of leadership, changes that need to be made can be made quickly without deliberation.

            And no, we don't want Aloha Airlines to go away. Right now Hawaiian is relatively strong as the #1 airline in Hawaii by a large margin. If Aloha were to go away then Hawaiian will have a psuedo-corner on the market here, especially for interisland travel.
            Eating my way through restaurants at http://www.nomnomfoodie.com

            Growing a local Hawaii food blogger community at http://www.hawaiifoodbloggers.com

            Comment


            • #7
              Re: Aloha Air files bankruptcy, again

              Originally posted by dyasu View Post

              And no, we don't want Aloha Airlines to go away. Right now Hawaiian is relatively strong as the #1 airline in Hawaii by a large margin. If Aloha were to go away then Hawaiian will have a psuedo-corner on the market here, especially for interisland travel.

              i second that opinion! otherwise, if they go!, i mean go, what i going do with all my miles?
              "chaos reigns within.
              reflect, repent and reboot.
              order shall return."

              microsoft error message with haiku poetry

              Comment


              • #8
                Re: Aloha Air files bankruptcy, again

                Aloha Airlines looking to sell all, or parts of the Airline. After 61 plus years of flying residents and visitors I would hate to see Aloha Airlines fold. I hope everything comes together for the airline and its employees.
                bin dea-dunn dat.

                Comment


                • #9
                  Re: Aloha Air files bankruptcy, again

                  Originally posted by dyasu View Post
                  And no, we don't want Aloha Airlines to go away. Right now Hawaiian is relatively strong as the #1 airline in Hawaii by a large margin. If Aloha were to go away then Hawaiian will have a psuedo-corner on the market here, especially for interisland travel.
                  Did you forget Island Air is still around? So is go!? That will be plenty of competition there to keep the market healthy.


                  Originally posted by oggboy View Post
                  Aloha Airlines looking to sell all, or parts of the Airline. After 61 plus years of flying residents and visitors I would hate to see Aloha Airlines fold. I hope everything comes together for the airline and its employees.
                  Either HA or Island Air should snap up the cargo operations. That's the only bright point that Aloha still has.

                  Comment


                  • #10
                    Re: Aloha Air files bankruptcy, again

                    Originally posted by dyasu View Post
                    And no, we don't want Aloha Airlines to go away.
                    If a well-heeled investor(s) can step forward with a viable plan to make Aloha profitable again, then great. I wish them all the luck. But I would be definitely against any kind of govt. bailout. If the time has come for Aloha to finally be put out of its financial misery, then let it happen.

                    Hey, Pan-Am and TWA also had long histories and traditions. But their time came and went. Life goes on.
                    This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.

                    Comment


                    • #11
                      Re: Aloha Air files bankruptcy, again

                      Looks like The FunBirds of Aloha will be going away. Not enough cash on hand to last, and no help from the BIG GUY anymore.... I hope ALOHA AIRLINES, finds a buyer.....
                      bin dea-dunn dat.

                      Comment


                      • #12
                        Re: Aloha Air files bankruptcy, again

                        If Aloha can't survive go!, then maybe they can stop competing against them on those routes without completely going out of business.

                        go! does not compete against Aloha on the mainland routes where Aloha operates the newer and more fuel efficient 737-700s. Aloha could cut the size of the airline down to these routes and eliminate the decrepit 737-200s. Aloha will be a shadow of its previous self, but at least it will be alive and maybe profitable.

                        If there's enough 737-700s, they could continue flying the most profitable inter-island cargo and passenger routes, but concentrate on the mainland routes where go! is not undercutting them.

                        Over time, they will scrimp and save, and slowly re-acquire more efficient planes to re-expand back into the inter-island market.

                        Comment


                        • #13
                          Re: Aloha Air files bankruptcy, again

                          I recall that I heard on the news that 3 out of 4 of Aloha's business units are profitable. The only one that is losing money is their inter island flights.
                          So it may be wise for them to walk away from that business.

                          On the other hand, it doesn't make any sense why UAL walked away from purchasing AQ recently. There must be more to it than high fuel costs.
                          Check out my blog on Kona issues :
                          The Kona Blog

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                          • #14
                            Re: Aloha Air files bankruptcy, again

                            United relies on Aloha's interisland service as part of the 2 firms code sharing agreement. I can see why United would walk away from Aloha if they had to buy the whole company. As stated, interisland is the portion that is not making money, hence their reluctance to buy completely into the entire airline.

                            Many, many years ago, United itself wanted to get into interisland service. They still could with one of the major carriers out of the market.

                            With that said, what airline would want to take over Aloha? Southwest? They certainly could since they have the same equipment. The mainland to Hawaii routes would be valuable to them. Alaska Airlines?

                            Another investment company?
                            I'm still here. Are you?

                            Comment


                            • #15
                              Re: Aloha Air files bankruptcy, again

                              United is in no strong position to be buying. Heck, they just emerged from bankruptcy in 2006 and there's all these talks about major legacy consolidation, DL/NWA, CO/UA, etc. They don't need Aloha's transpacific routes, they have those. They don't use any planes similiar to Aloha's. They have the 737-300s and the 737-500s but they can't do interisland hops like the 737-200s and they have no use for the 737-700s since they have larger planes.

                              Alaska Airlines wouldn't need Aloha since they have their own ETOPS certification and service to Hawaii now.

                              Southwest has ATA and even ATA is scaling back so why would Southwest buy Aloha. Too much trouble for their effort.

                              Maybe Virgin America if they want to expand routes to Hawaii, grab Aloha's ETOPS certification.

                              Hawaiian has no need in any of the areas. Interisland, they already have excess capacity on their 717s so they can just fill that up. Transpacific they are sticking with 767s and then A330s in the near future. Interisland cargo they could beef up but to obtain a small fleet of 737-200Cs, is it worth the trouble?

                              Independent investment? Doubtful. They just need to look at how much Yucaipa lost and will step away.

                              My opinion is that Island Air would be the best chance. Buy Aloha Air for cheap like how JP Morgan bought Bear Sterns. Then shed all the 737-200s for interisland. Lease a few more turboprops to boost capacity and streamline op costs since props consume less fuel. Then invest in a new fleet of ATR-72-600s which are supposed to be available in the next 2 years, newest generation of turboprops, 70 seater, has a cargo variation than can take standard pallet containers so this best matches the interisland market for pax and cargo. They can then be ambitious and continue the transpacific operations or sell that unit off.

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