Aloha leaves cargo in lurch

[KamaAina]

Source: Honolulu Star-Bulletin

Aloha Airlines abruptly shut down its cargo operations yesterday, leaving 85 percent of the state's air cargo in limbo and putting at least 400 employees out of work.

The company's cargo unit delivers such perishable goods as bread and bakery products, dairy products, fresh produce, fresh fish, newspapers and pharmaceutical supplies, as well as large items. All cargo flights were canceled last night....

Love's Bakery, which has shipped up to 36,000 pounds of goods per day on Aloha since 1985, hustled to get 22,000 pounds to the neighbor isles today using freight forwarder Surefire Consulting LLC, which flew two planes to Kauai and the Big Island via the mainland. "We were given absolutely no notification," said Mike Walters, Love's president.

Aloha has contracts to deliver the majority of the mail to Maui and the Big Island, but the U.S. Postal Service said it has made alternative plans with Corporate Air, which delivers mail to Kauai and other destinations. Still, officials said there remains a possibility of some delayed service.



Read more: http://starbulletin.com/2008/04/29/news/story01.html

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Aloha cargo had still been flying even after they abruptly shut down passenger operations a few weeks ago. In fact, they had 85 percent of the market. They were looking to sell the cargo unit when, once again, GMAC pulled the plug. Is GMAC the next Bear Stearns?

I am particularly fond of Love's flying bread from Honolulu to L.A. and back to Kaua'i. The 90-mile trip ended up being 4,800 miles! Keep it up, and Kaua'i will start importing mainland bread sooner rather than later.

It seems as though the whole state is crumbling around my ears, all because of a series of "business decisions" made by suits on the mainland. :scared:

[LakeSamish706]

1. Does this have more to do with the cost of fuel than anything else? n/t

[KamaAina]

2. They had 85 percent of the market. They could have tacked on fuel surcharges

the way passenger airlines, and ocean shippers Matson and Sea-Land, always do.

The one exception would have been the mail contract; as noted, "postage has not doubled".

Either way we are screwn. If small businesses like flower producers on the Neighbor Islands start closing, there won't be enough Rapid Response Teams in the whole state to save them. :scared:

[roguevalley]

10. Hawaii, God's golden isle. I am sorry to hear this. :(

[LisaM]

3. Where is our government? This is starting to be a crisis.

Why can't we subsidize our airlines, rather than the window dressing of sending everyone $600? It is going to cost people at least that much in higher food prices anyway, by the end of the year, if we can't get food.

[balantz]

4. Where is our government?

We lost our government to the fascists who operate for the huge corporate owning elite.

[Hekate]

5. I feel sick. I'm so sorry. West coast transportation strikes used to hit us pretty hard, & NO help

...from Uncle Sam. None.

Because I could see this coming 30 years ago -- how very, very vulnerable Hawai'i is -- it makes me all the sadder.

Hawai'i was already overcrowded when I left in 1979. Fresh water sources alone were unsustainable given the numbers of residents + military + tourists on any given day. Unless there is some kind of government subsidy, the state cannot feed its own population -- and it couldn't then. It was already relying on imported food because it was "cheaper" to import it than to grow it.

When I left there was discussion in the Star-Bulletin about the potential closure of the last dairy in the state. Here was the argument for the state government subsidizing a dairy -- which applies to every other form of food-production, imo -- Hawai'i is stuck in the middle of the Pacific Ocean, 3000 miles from anyplace else. Initially prices might be cheaper. Then the suppliers realize that residents have no place else to turn to and prices inevitably rise to reflect the cost of transportation. Not only that, freshness and quality also might suffer, the Star-Bulletin pointed out. Grade A milk and eggs may slip to Grade B. (When I visited 10 years later Foodland was selling "filled milk" that was more expensive than any milk in California, but cheaper than unadulterated milk in Hawai'i.) Worse, when there is a West Coast dock strike or airplane strike Uncle Sam will not step in and order them to load goods for Hawai'i.

The fact that one carrier could be responsible for shipment of nearly all the perishable goods into one state in the union and be allowed to fail and walk away from it speaks volumes to me about the failure of our government at every level.

Hekate

[Hekate]

6. How am I the first Rec? C'mon, let's let the rest of DU have a look at this

:-(

[KamaAina]

7. Actually they had 85 percent of the *interisland* market

so it's the Neighbor Islands that are getting hammered on everything from perishables to (potentially) mail service. In fact, as mentioned above, a large bakery on O'ahu made a shipment to Kaua'i (90 miles away) by way of Los Angeles!!

Does make you wonder, though: a different carrier, Matson Lines, has about an 80% market share on ocean shipping from the mainland. What if.... :scared:

[Hekate]

9. Ah, I misunderstood that part. But still.... auwe. nt

[slackmaster]

8. I guess mainland school children won't be getting their free macadamia nuts now

:cry: