Aloha Airlines Files Bankruptcy, Blames Discount-Carrier GO!
March 21st, 2008
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Aloha Airlines has filed for bankruptcy protection for the second time in the past four years blaming the high cost of fuel and the continuing, what it calls illegal, airfare war brought on by Mesa Air Group’s inter-island carrier GO! Airlines.
“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.
Aloha stated that all current operations will continue as normal during the bankruptcy and is informing customers that they should see no day to day changes or adverse affects to prices, mileage or departure and arrival times as long as the courts allow them to operate during the bankruptcy.
In 2004 employees of Aloha Airlines gave up close to a quarter of their pay in concessions and terminated the pension plan for three of it’s four unions to help ease the bankruptcy burden.
For more details: Aloha Airlines
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I don’t like to think of how the Aloha Airlines employees feel dealing with this Chapter 11 hanging over their heads.
And I’m torn with the concept of fairness as businesses battle each for turf.
I think all of Aloha Air’s eggs are in one basket (Hawaii), and Mesa Air seems to be financing their unrealistically low and temporary inter island fares off of the margins they get from their other, non-Hawaii routes - I could be wrong.
I wonder how Hawaiian Airlines stays solvent ?
Apr 1st, 2008 at 6:57 pm
[…] This comes after Aloha Airlines recently filed for bankruptcy. […]