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Aloha Airlines shuts down passenger operations

Aloha Airlines shut down its inter-island and transpacific passenger flight operations. Aloha’s last day of operations was yesterday Monday, March 31, 2008. Yesterday, Aloha operated 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 were prepared to assist and accommodate Aloha’s passengers who have been inconvenienced.

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.

"We deeply regret the impact this will have on our dedicated employees who have made Aloha one of the best operating airlines in the country. Aloha Airlines was founded in 1946 to give Hawaii’s people a choice in inter-island air transportation.

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. We realize that this comes as a devastating disappointment to our frequent flyers and our loyal business partners who have supported this company for many, many years."

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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