Aloha Airlines To Shut Down Passenger Operations

[brooklynite]

Source: Aloha Airlines

HONOLULU – Aloha Airlines announced today that it will be shutting down its inter-island and transpacific passenger flight operations. Aloha’s last day of operations will be Monday, March 31, 2008. On that day, Aloha will operate its schedule with the exception of flights from Hawaii to the West Coast and flights from Orange County to Reno and Sacramento, and Oakland to Las Vegas. Code-share partner United Airlines and other airlines are prepared to assist and accommodate Aloha’s passengers who have been inconvenienced.

For more information on United’s accommodation options, contact United at 1-800-UNITED1 or www.united.com. Passengers who do not wish to be re-accommodated by another airline should contact their travel agent or credit card company to request a refund. Effective immediately, Aloha will stop selling tickets for travel beyond March 31, 2008.

The shutdown of Aloha’s passenger operations will affect about 1,900 employees. Aloha also announced that its air cargo and aviation services units will continue to operate as usual while the U.S. Bankruptcy Court seeks bids from potential buyers. On March 27, 2008, Saltchuk Resources, Inc., announced its intention to buy Aloha’s air cargo business.

“This is an incredibly dark day for Hawaii,” said David A. Banmiller, Aloha’s president and chief executive officer. “Despite the groundswell of support from the community and our elected officials, we simply ran out of time to find a qualified buyer or secure continued financing for our passenger business. We had no choice but to take this action.

Read more: http://www.alohaairlines.com/landing_pages/aloha_oe_news_release.php

---

"In the long term, we're going to be just fine. People will still be able to work." -- George W. Bush

[TacticalPeek]

1. Aloha.

Is it the Boosh economy yet?

[RUMMYisFROSTED]

19. *

[Maven]

2. That sucks. As a side note, who else remembers that Aloha flight

that landed after half the roof came off? Crazy. There was a show on National Geographic Channel that covered it.

[sharesunited]

4. Peeled open like a sardine can.

[Wilms]

6. Recalled that recently...

[PlanetBev]

55. I believe that the pilot or co-pilot that brought in that plane was a woman

A friend of mine is a pilot for United Airlines. She told me that the woman pilot of that Aloha flight was honored at a dinner and given an award appropriately titled the "better you than me" award.

[sharesunited]

3. Here is a business that the State of Hawaii should acquire.

If business ownership by government weren't taboo.:shrug:

[dkf]

5. They were looking into it.

I'm surprised it happened so fast.

I guess in this time of liquidity problems on Wall Street, it is very hard to get credit for marginal businesses.

[sharesunited]

12. States are exempt from the securities laws.

They should organize an acquisition company and make a public offering of stock. They are missing an obvious opportunity to save a critical economic engine. Inter-island air transportation is vital.

[dkf]

20. The state was trying to set up a loan guarantee...was to be heard on Tuesday.

Hawaii lawmakers on Friday introduced a measure that could guarantee up to 90 percent of a private loan for troubled Aloha Airlines.

The measure, which amends an existing transportation bill, will be heard at 10 a.m. Tuesday, the day after Aloha returns to U.S. Bankruptcy Court in Honolulu.

House Bill 509 is modeled on 1993 legislation that was intended to help Hawaiian Airlines, which was struggling with financial difficulties at the time.

The bill's first hearing is before the Senate Committee on Ways and Means.

A Senate spokesman told PBN that, if passed by both chambers, HB 509 could be submitted for Gov. Linda Lingle's signature as early as April 9. The guarantee would take effect immediately.

http://www.bizjournals.com/pacific/stories/2008/03/24/daily48.html

[sharesunited]

29. Oh yep, I can see the problem with a loan guarantee.

Given the current state of the credit markets.

Ownership is a more direct solution. The State of Hawaii issues shares in a newly formed acquiring company, retaining 51% interest for control.

Acquiring company makes a tender offer for shares of Aloha Airlines at fire sale price.

Aloha Airlines merges into acquiring company.

Acquiring company changes name to Aloha Airlines the Sequel.

Presto, State of Hawaii owns 51% of the going concern.

This recession won't last forever, and fuel costs can be hedged. It saves Aloha for a brighter day, when divestiture or restructuring would be feasible.

[Sen. Walter Sobchak]

33. the problem is opperating financing

a bankrupt company needs debtor-in-possession financing to keep the lights on, nobody is going to throw that lifeline to an airline that isn't "too large to fail" with three digit oil loan guarentee or no loan guarentee.

[Hannah Bell]

24. Great idea. Let the people own it & run it, & take the profit. n/t

[dkf]

32. I'm not sure there is a profit.

This isn't the first bankruptcy they've gone through.

[friendly_iconoclast]

36. There is Alaska State Ferries. Why not Aloha State Airlines?

Why not a state-run airline? It's not like you can drive from Oahu to Kauai

[merwin]

7. "The shutdown of Aloha’s passenger operations will affect about 1,900 employees."

Is that corporate lingo for "we're laying off 1,900 employees"?

[dkf]

8. Already got an email from Aloha's competitor Hawaiian Air...that was fast.

Aloha xxxx,

As you have heard, Aloha Airlines will stop service at the end of the day, March 31st.

During this very difficult time, we anticipate that there will be a heavy burden on our Reservations call center, as well as at the airports. We have added 6,000 interisland seats to continue to serve you and help accommodate the additional passengers.

We want to thank you in advance for your understanding and patience as we all try to help our friends and family in Hawaii.

As a valued member, we remain committed to providing you with the service levels that you have come to know at Hawaiian.

Mahalo,

Glenn Taniguchi
Senior Vice President, Marketing & Sales

[gear_head]

9. welcome news

less air pollution

everybody wins

[dkf]

10. We do have a superferry now.

But it stays in port when the ocean and weather are rough.

[KamaAina]

13. And it only goes to one island, Maui.

And then, as you mentioned, only when the sea is dead calm. Meanwhile, a ferry from Moloka'i to Maui goes off, as far as I know, every day.

Did I mention that Hawaiian pulled out of Moloka'i about a year ago? That leaves only Island Air -- a division of Aloha. If that goes down, that entire island, which just lost 5 percent of its whole workforce when a major landowner shut down, could be cut off... :scared:

edit: emoticon

[dkf]

21. Well Hawaiian will have to go back now.

I just hate to see what the fares will look like.

[dysfunctional press]

31. if island air is a division of aloha...and aloha goes belly-up...it can't be good news.

can it? :shrug:

i say bring back mahalo air and their atr turboprops.

[KamaAina]

35. Mercifully, Island Air has been independent of Aloha for a few years now

that was among my first thoughts: OMFG! Moloka'i is cut off! (Hawaiian pulled out of there a while back)

Fortunately, Island Air is now separate.

http://en.wikipedia.org/wiki/Island_Air#Hawaii_Island_Air

In December 2003, it was announced that Gavarnie Holding, LLC would purchase Aloha IslandAir from the Aloha AirGroup, making Island Air Hawaii's third largest independent airline. The purchase was completed on May 11, 2004, and the company was renamed Hawaii Island Air, Inc., although the airline continued to do business as "Island Air." After the purchase, Island Air expanded its business, acquiring more aircraft and flying new routes.

Island Air is wholly owned by Gavarnie Holding and has 400 employees (at March 2007).

(BIG sigh of relief)

[KamaAina]

14. Except the thousands who may be stranded off-island

including at least one valued colleague of mine.

With no votes, you ARE the Weakest Link. Goodbye!

[Sen. Walter Sobchak]

27. oh please!

a dozen fewer 737's flying low over the middle of the fucking pacific will not have a huge impact on the climate or anything else, except the disposable incomes of those who live in Hawaii and those who will find themselves out of work in a really expensive part of the country.

[Bill McBlueState]

53. probably not

The demand for interisland flight won't change. Some other airline will just step in to take Aloha's business, and there will be just as many flights as before.

[Fed_Up_Grammy]

11. Aloha,Aloha !

[mahatmakanejeeves]

15. That site says:

Unfortunately, unfair competition has succeeded in driving us out of business, bringing to an end a 61-year-old company with a proud legacy of serving millions of travelers in the true spirit of Aloha.

What would the "unfair competition" be?

[dkf]

23. Go! Airlines started up a few years ago. Undercut pricing and offered $19 and $29 one way tickets.

Go! Airline Announces Limited $19 Fares

POSTED: 5:34 pm HST June 7, 2006
UPDATED: 9:31 am HST June 8, 2006

HONOLULU -- Hawaii's newest airline launched a new $19 one-way fare as it prepares to begin its flight schedule on Friday.

Go! Airline is a subsidiary of Mesa Airlines. They have three jets that hold 50 passengers. On Wednesday the company's chief executive officer announced an introductory special one-way interisland ticket for $19.

[Sen. Walter Sobchak]

16. I flew Aloha alot

Their non-stop flights out of Orange County were cheap and convenient, I doubt I will be able to travel to Hawaii in future without having to deal with the lowlife human detritus at LAX.

[Peace Patriot]

17. In Argentina, when the roof fell in on the economy--also induced by

global corporate predators--the workers took over many businesses, and put them back on their feet. Here's an example of one, and it's interesting how differently workers run a business--how they make decisions (democratically), how they assign management responsibilities (randomly), the increased level of respect they have for each other, the community services they perform, and their improved attitude toward work, as co-owners not wage-slaves.

Another World is Possible: The Ceramics of Zanon

Raúl Zibechi - 1/26/2006

http://www.globalpolitician.com/21574-argentina-south-america

[Peace Patriot]

28. Here's another, more comprehensive article on worker-owned businesses in

Argentina...

Recuperated Enterprises in Argentina: Reversing the Logic of Capitalism

Marie Trigona - 3/20/2006

http://www.globalpolitician.com/21670-south-america-argentina

"Argentina’s worker-run factories are setting an example for workers around the world that employees can run a business even better without a boss or owner. Some 180 recuperated enterprises up and running, providing jobs for more than 10,000 Argentine workers. The new phenomenon of employees taking over their workplace began in 2000 and heightened as Argentina faced its worst economic crisis ever in 2001. Nationwide, thousands of factories have closed and millions of jobs have been lost in recent years. Despite challenges, Argentina’s recuperated factory movement have created jobs, formed a broad network of mutual support among the worker-run workplaces and generated community projects.

"Argentina’s employee-run businesses are very diverse, each with specific legal standing and forms of organizing production. In almost all cases workers took over businesses that had been abandoned or closed by their owners in the midst of Argentina’s financial meltdown in 2001. The owners usually ceased production, stopped paying wages, and went bankrupt. The workers’ decision to take over their plant was a decision made out of necessity--not necessarily out of ideology. The clear worry of how to safeguard workers’ jobs motivated the act of taking over a factory and making it produce without a boss or owner." (MORE)

[CatholicEdHead]

18. Tough day

The Islands need both airlines.

[KamaAina]

22. Hawaiian (Aloha's main competitor) may, it appears, help to take up the slack

http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20080330/BREAKING/80330063

Hawaiian Airlines said today it will add more than 6,000 seats to its usual interisland schedule, starting Tuesday (April 1) to pick up passengers after Aloha Airlines ceases its passenger service.

"On Tuesday, April 1, Hawaiian is expanding its daily interisland flight schedule by more than 6,000 seats and staffing up airport personnel to alleviate the backlog of displaced ticket holders resulting from Aloha's closure," the company said in a news release.

One does wonder where they're getting the planes on such short notice; I imagine it'd have to be from Aloha's fleet, which, I believe, is composed of roughly identical Boeing 737-300s. Hmmm... on such short notice... :tinfoilhat:

[dkf]

25. They must have been preparing...

[CatholicEdHead]

26. Hawaiian flies 717-200 for interisland

And 767-300 for the Mainland and Australia and the south pacific routes, no 737's in the fleet.

[dysfunctional press]

30. i always liked mahalo air for inter island flights when they were around.

they had atr turboprops, with the wing on top, so the view from the windows was unobstructed and great!

[soothsayer]

34. Shoot! I've got two legs on Aloha Air on an upcoming trip, though my itinerary shows US Airways

am I screwed?

[NickB79]

37. With fuel prices soaring, it won't be the last one to go under

The skies are gonna get a whole lot emptier as Peak Oil wipes out whole portions of the global economy.

[Haole Girl]

38. With the competition ever increasing...

..and the introduction of Go Airlines to the islands, this news didn't surprise me. It was a red ink blood bath.

[maddezmom]

39. kick

[The Sushi Bandit]

40. Aloha Airlines ends six decades as ‘the people's airline’

Source: honolulu advertiser

Aloha Airlines ended 61 years of passenger service yesterday after a last-gasp appeal to a federal judge failed.

With no buyer and no cash, the state's second-largest carrier laid off 1,900 workers, in one of the largest mass firings Hawai'i has ever seen.

Thousands of passengers rushed to find alternative flights with only a day's warning. The airline canceled about 400,000 reservations, and travelers are now seeking refunds.

The failure of a storied airline that was an integral part of Hawai'i's modern history left thousands with a sense of loss.

"It's very sad," said Sharlene Painter, an Aloha flight attendant for 30 years. "It was beyond our control and we were totally blindsided."



Read more: http://www.honoluluadvertiser.com/apps/pbcs.dll/frontpage

---

a VERY sad day for Hawai'i

[gateley]

41. Life as we know it is collapsing around us,

faster than anyone ever thought was possible.

[Radio_Lady]

43. We just got back from Hawaii and I feel very sorry for all the people

who will suffer because of this.

In peace,

Radio Lady in Oregon

[gateley]

48. Self Delete (posted something that I read in the OP!) nt

[dkf]

42. Naked Furniture closing down

and so is Molokai Ranch. I am beginning to get a little nervous here.

[Radio_Lady]

44. DKF, we live in Portland, OR -- Wickes Furniture is in bankruptcy, Levitz Furniture has closed;

CompUSA went under, and there are rumors that Linens 'n' Things may be in trouble.

It seems as if each day brings more and more bad news.

Sorry for your problems in Hawaii -- we are timeshare owners at the Hilton Hawaiian Village on Waikiki. "Hang loose" if you can...

In peace,

Radio Lady

[dkf]

45. Our real estate is holding up so I thought we might be ok.

But it looks like the business financing is drying up so marginal businesses are starting to go under.

[Radio_Lady]

46. I don't know where you are located; but as an aside... we're putting our home on the market

this week -- it's too big for us after ten years as we are entering our seventies (well, one of us is already there!) We wrote up a contingency offer today 4/1/08 on a brand new home that is pretty much ready for occupancy immediately. (Know anyone who has ever signed documents on April Fool's Day??? Weird.)

So, we'll be testing the residential market as soon as next week! Meanwhile, I have a lot of cleaning up to do for a realtor open house, and then we're taking a trip to Boston.

Wish us luck, I think. We're scaling down from 2500 sq. ft. to a smaller house, with much of the property taken care of by a homeowners' association. It's a small development of about 50 families. The one we are in now has 262 families.

Have a wonderful Wednesday!

In peace,

Radio Lady in Oregon

[dkf]

50. Best of luck to you!

And I agree that having the grounds taken care of is very nice when you get older. Our yard is surrounded by a hedge that is a bear to maintain.

[Radio_Lady]

54. Yes, you do get to an age when a little less physical activity is a blessing!

We took care of about an acre of house, trees, and backyard swimming pool for over 30 years. Of course, there were those five children, too. Honestly, I don't know how we did it!

That was in Boston -- and we "downsized" in Portland, OR to a slightly smaller house and room for the grandkids to visit -- located on a small lot (that's they way they do it in Portland).

However, the upkeep, both inside and outside, is starting to get to us. If we can buy this new home they built on speculation (all done except for a couple of upgrades), we'll have something more manageable and closer to a lot of services. The official sq. footage of the property is 2006, but it looks larger because of the curved corner lot that it's on. The builder has already sold four other houses in this development BEFORE the official opening, which is next Sunday, April 6.

The builder accepted our offer today, contingent on our selling our home in the next couple of weeks. We have to put down some "earnest money," all returnable if we can't get a buyer. Our realtor is optimistic because we do have a really nice home (hate to leave it, truly). However, the market really looks dead for re-sale homes, I have to admit. We've had two beautiful days in a row -- but April rains can be dicey here and the forecast is for RAIN this weekend.

It will take a lot of luck to pull it all together.

Thanks for your comments.

[Sen. Walter Sobchak]

47. it will be difficult for many bankrupt companies to survive.

The easy access to debtor-in-possession financing is one of the victims of the credit crunch.

I will miss Aloha as flying to Hawaii from an airport 10 minutes from my house without having to deal with LAX and all the shitheads who work there was really nice.

[DemocratInSoCal]

51. Go Ducks!!

And yet the market jumps up and down for joy, as money falls from helicopters in the sky.

Nothing to see here folks, move along.

1,900 Jobs......OUTA HERE!!

[opihimoimoi]

49. Unless we see a shift from the Pub Control to the Dem Party soon

this crap gonna continue....

Bush has nearly bankrupt America....

[gateley]

52. I fear it will continue for a while anyway --

it's in motion. It is going to take some time to put on the brakes and begin to turn it around. :grr: