Airlines: Aloha Closes Doors

After 60 years of operation in the Hawaiian market,  Aloha Airlines today will close its doors for passenger operations. Citing difficult trading in the face of low cost competitors as well as economic downturn,  Aloha will cease selling passenger tickets today for any future flights.

President David Banmiller has claimed unfair predatory pricing by low cost competition brought on the bankruptcy that eventually has claimed the 61 year old air carrier.    While not specifically named, Go! Airlines is the primary discount airline in the Hawaiian market. Go! is a regional brand of Mesa Airlines based in Honolulu. 

Passengers with pre-purchased tickets on Aloha Airlines will be accommodated by United Airlines .   Hawaiian Airlines also has special arrangements to assist stranded passengers.

Aloha was also a primary air cargo carrier in the inter-island and mainland US to Hawaii trade.  Those assets and services are being bid on by the parent company of Northern Air Cargo, Saltchuk Resources of Seattle.   Northern Air Cargo serves the Alaskan cargo market.   

The loss of Aloha Airlines in the cargo market is a big deal because their 737 aircraft can accommodate air freight.  Go! airlines operates low cost CRJ regional jets, which cannot accommodate cargo with any meaningful load. It is therefore important that Aloha's cargo assets be purchased and operated by someone.  US Federal Bankruptcy Court is accepting bids for these assets.

Aloha Airlines was a stalwart air carrier in the Hawaiian market and had suffered from financial trouble in its past. However, the carrier simply couldn't acquire additional financing in order to avoid the closure of the business.  At one point in the early 1990's, Aloha considered a merger with rival, Hawaiian Airlines, but that deal never came to completion.

clipped from www.alohaairlines.com 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.

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