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  #1  
Old March 20th, 2008, 10:12 PM
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Exclamation Aloha Air files bankruptcy, again

Breaking news from the Advertiser at this link:
Quote:
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.
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  #2  
Old March 20th, 2008, 10:18 PM
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Default Re: Aloha Air files bankruptcy, again

I take it that Go! doesn't do a cargo service like Aloha and Hawaiian do?
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  #3  
Old March 20th, 2008, 11:01 PM
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Default Re: Aloha Air files bankruptcy, again

Quote:
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.
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  #4  
Old March 21st, 2008, 10:41 AM
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Default 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.
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  #5  
Old March 21st, 2008, 01:30 PM
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Default Re: Aloha Air files bankruptcy, again

Quote:
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".







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  #6  
Old March 21st, 2008, 02:12 PM
dyasu dyasu is offline
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Default Re: Aloha Air files bankruptcy, again

Quote:
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.
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  #7  
Old March 21st, 2008, 02:53 PM
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Default Re: Aloha Air files bankruptcy, again

Quote:
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?
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  #8  
Old March 21st, 2008, 06:34 PM
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Default 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.
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Old March 21st, 2008, 08:50 PM
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Default Re: Aloha Air files bankruptcy, again

Quote:
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.


Quote:
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.
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  #10  
Old March 21st, 2008, 11:39 PM
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Default Re: Aloha Air files bankruptcy, again

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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.
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  #11  
Old March 22nd, 2008, 02:45 AM
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Default 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.....
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  #12  
Old March 22nd, 2008, 06:10 AM
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Default 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.
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  #13  
Old March 22nd, 2008, 07:28 AM
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Default 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.
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  #14  
Old March 22nd, 2008, 10:01 AM
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Default 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?
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  #15  
Old March 22nd, 2008, 12:35 PM
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Default 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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  #16  
Old March 22nd, 2008, 01:59 PM
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Default Re: Aloha Air files bankruptcy, again

Aloha's bank cut off funds to the company yesterday, and now Aloha is looking to sell the airline entirely, or as parts.

Read the full story:
http://www.honoluluadvertiser.com/ap...WS01/803220331
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  #17  
Old March 22nd, 2008, 05:47 PM
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Red face Re: Aloha Air files bankruptcy, again

Quote:
Originally Posted by joshuatree View Post
Either HA or Island Air should snap up the cargo operations. That's the only bright point that Aloha still has.
I seriously doubt either airline will be able to effectively replace Aloha Air Cargo. Those two can barely manage to run their current operations, and as far as Iím concerned, Air Cargo is the crown jewel of Aloha Airlines, and what sets them apart from the pack. Pacific Wings has tried to emulate Alohaís freight division, and I can tell you from personal experience, their operation is horribly inadequate, to put it mildly. It will take years, if not decades to replicate the efficiency, urgency and sheer capacity that time-sensitive industries have come to depend on with Aloha.

DISCLAIMER
: I donít work for Aloha Airlines... I just think no one has anything even close to their freight division.
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  #18  
Old March 22nd, 2008, 09:02 PM
joshuatree joshuatree is offline
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Default Re: Aloha Air files bankruptcy, again

Quote:
Originally Posted by TuNnL View Post
I seriously doubt either airline will be able to effectively replace Aloha Air Cargo. Those two can barely manage to run their current operations, and as far as Iím concerned, Air Cargo is the crown jewel of Aloha Airlines, and what sets them apart from the pack. Pacific Wings has tried to emulate Alohaís freight division, and I can tell you from personal experience, their operation is horribly inadequate, to put it mildly. It will take years, if not decades to replicate the efficiency, urgency and sheer capacity that time-sensitive industries have come to depend on with Aloha.

DISCLAIMER
: I donít work for Aloha Airlines... I just think no one has anything even close to their freight division.

I'm not suggesting either airline replace Aloha Air Cargo. I'm saying either airlines should buy that unit up to bolster their position and bottom line. Neither needs Aloha's interisland pax unit. But maybe Island Air could use Aloha's transpacific unit if they are ambitious about expanding and diversifying.
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  #19  
Old March 23rd, 2008, 06:27 AM
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Default Re: Aloha Air files bankruptcy, again

What you don't want to see on your airplane:

Aloha Airlines and a loose screw.
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Old March 24th, 2008, 10:49 AM
joshuatree joshuatree is offline
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Default Re: Aloha Air files bankruptcy, again

Looks like HA has already written off Aloha.

New early morning HA flights are:

1106 HNL-OGG 0500 0537
1105 OGG-HNL 0602 0636

1103 HNL-LIH 0510 0547
1104 LIH-HNL 0615 0645

1108 HNL-KOA 0550 0633
1107 KOA-HNL 0703 0745

1102 HNL-ITO 0605 0656
1101 ITO-HNL 0725 0814

1163 HNL-LIH 0620 0657
1164 LIH-HNL 0725 0755

The new late evening HA flights are:

1123 HNL-LIH 2149 2226
1124 LIH-HNL 2254 2324

1122 HNL-ITO 2004 2055
1121 ITO-HNL 2124 2213

1112 HNL-ITO 2059 2150
1111 ITO-HNL 2219 2308

1143 HNL-LIH 2125 2202
1144 LIH-HNL 2230 2300

1118 HNL-KOA 2114 2157
1117 KOA-HNL 2227 2309

1132 HNL-ITO 2105 2156
1131 ITO-HNL 2225 2314

1128 HNL-KOA 2147 2230
1127 KOA-HNL 2300 2342

1133 HNL-LIH 2200 2237
1134 LIH-HNL 2305 2335

1113 HNL-LIH 2205 2242
1114 LIH-HNL 2310 2340

1116 HNL-OGG 2156 2233
1115 OGG-HNL 2301 2335
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  #21  
Old March 24th, 2008, 04:44 PM
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Default Re: Aloha Air files bankruptcy, again

While not directly connected with the Aloha Air bankruptcy, this AP article on turboprops echo what one of our users have been saying.

TurboProps Make Comeback

The above is a link to the AP version of the article, which appeared slightly edited in today's StarBulletin and is not online there.

With the possible demise of Aloha Airlines' interisland service, it may be a good opportunity for Island Air to bring back their Q400 plane(s). Maybe.
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  #22  
Old March 24th, 2008, 08:13 PM
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Default Re: Aloha Air files bankruptcy, again

The fact that an airline could come in and disrupt another airline that had been in operaton for decades pretty much tells me that Aloha Airlines didn't hedge their longterm financial stability as good as Hawaiian Airlines.

I believe Aloha would have folded eventually because of it's fiscal management, go! just facilitated it's demise earlier than later.

The success of go! also underscores the fair-weatheredness of Hawaii's flying passengers OR it's economic situation where passsengers are forced to fly the cheaper fare.

In the retail sector, when Home Depot opened next to City Mill in Iwilei, word was going around that it would signal the deathnail for City Mill. It didn't but it did kill Kilgo's. City Mill changed it's retail strategy and survived, Kilgo didn't.

In Hilo Home Depot opened a few blocks down from HPM. Same fears were talked about on the streets of Hilo. HPM is still around because they too had to rethink their business plan.

Enter go! Airlines. Aloha is now bancrupt and Hawaiian is leasing jumbo jets for overseas flights. It seems Hawaiian did their homework and Aloha went to the movies instead.

Remember thru it all Hawaiian Airlines is as much of a competitor to Aloha as go! Airlines is and in a world of competition, there are clear winners and unfortunately, losers. But in the real and unfair world, it's NOT how you play the game but how you WIN. Sad but true statement
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  #23  
Old March 24th, 2008, 11:33 PM
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Default Re: Aloha Air files bankruptcy, again

Quote:
Originally Posted by craigwatanabe View Post
Remember thru it all Hawaiian Airlines is as much of a competitor to Aloha as go! Airlines is and in a world of competition, there are clear winners and unfortunately, losers. But in the real and unfair world, it's NOT how you play the game but how you WIN. Sad but true statement
It's definitely a business, as you say. I don't know if I would call the situation "sad," though. My memory isn't so short that I've forgotten how both Hawaiian and Aloha acted like bullies in the interisland market, driving out upstart competitors like Mid-Pacific and Mahalo Air in the past. But now that an even bigger fish (Mesa/go!) has entered Hawaii's pond, the hunter has now become the prey.

Having said all that, I do feel for the longtime employees at Aloha, some of whom are friends and acquaintances. Hopefully, all of them land on their feet, wherever and whatever it may be.
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Old March 25th, 2008, 01:08 AM
joshuatree joshuatree is offline
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Default Re: Aloha Air files bankruptcy, again

Quote:
Originally Posted by mel View Post
While not directly connected with the Aloha Air bankruptcy, this AP article on turboprops echo what one of our users have been saying.

TurboProps Make Comeback

The above is a link to the AP version of the article, which appeared slightly edited in today's StarBulletin and is not online there.

With the possible demise of Aloha Airlines' interisland service, it may be a good opportunity for Island Air to bring back their Q400 plane(s). Maybe.
At this point, I'm hoping Island Air puts an order for the new ATR-72-600s instead. It will be available in 2010 and represents the latest turboprop generation. It has a pax and all cargo version so that could replace the Aloha Air cargo service.


Quote:
Originally Posted by Frankie's Market View Post
It's definitely a business, as you say. I don't know if I would call the situation "sad," though. My memory isn't so short that I've forgotten how both Hawaiian and Aloha acted like bullies in the interisland market, driving out upstart competitors like Mid-Pacific and Mahalo Air in the past. But now that an even bigger fish (Mesa/go!) has entered Hawaii's pond, the hunter has now become the prey.

Having said all that, I do feel for the longtime employees at Aloha, some of whom are friends and acquaintances. Hopefully, all of them land on their feet, wherever and whatever it may be.
All the more reason to cheer for a stronger Hawaiian and Island Air because that will translate to more hiring in those respective companies.
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Old March 27th, 2008, 03:34 PM
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Default Re: Aloha Air files bankruptcy, again

Looks like the parting out of Aloha Airlines' operation has begun, with Young Brothers announcing their plans to purchase the air cargo unit.

http://www.honoluluadvertiser.com/ap...ING03/80327033
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