[WESTOP] SFGate: Aloha Airlines Halting Passenger Service

[Tomasa Mauricio]

FYI. Thanks Michele for passing along the information.
 
Tomasa Mauricio, M.S.
Tutor Coordinator
GEAR UP
Pre-College Institute
College of Education
San Diego State University
Phone: (619)594-1899
Fax: (619)594-7821

________________________________

From: Michele Scott [mailto:mscott at csulb.edu]
Sent: Sun 3/30/2008 5:39 PM
Subject: SFGate: Aloha Airlines Halting Passenger Service




 Curglin called today to say Aloha airlines is going out of business. This
may impact many of the WESTOP members going to the conference.
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This article was sent to you by someone who found it on SFGate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=/n/a/2008/03/30/financial/f154954D36.DTL
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Sunday, March 30, 2008 (AP)
Aloha Airlines Halting Passenger Service
By AUDREY McAVOY, Associated Press Writer


   (03-30) 17:34 PDT Honolulu (AP) --
   Aloha Airlines said Sunday it will halt all passenger service after
Monday, signaling the end of an airline that has served Hawaii for more
than 60 years.
   Aloha, which filed for bankruptcy for Chapter 11 bankruptcy protection on
March 20, was a casualty of fierce competition and rising fuel prices. The
airline said it will stop taking reservations for flights after Monday.
   "We simply ran out of time to find a qualified buyer or secure continued
financing for our passenger business," said Aloha President David
Banmiller in a statement. "We had no choice but to take this action."
   Aloha has suffered since Phoenix-based Mesa Air Group Inc. launched a new
interisland carrier called go! airlines in 2006, triggering a local
airfare war.
   In January, go! reported a $20 million operating loss in its first 16
months of operations. Meanwhile, Aloha and Hawaiian Airlines — the
other major interisland carrier — reported combined losses of nearly
$65 million since go! began operating.
   Aloha's bankruptcy filing said the airline was unable to generate
sufficient revenue due to what it called "predatory pricing" by go!
Banmiller didn't mention go! by name in his statement, but did blame the
company's demise on rival companies.
   "Unfortunately, unfair competition has succeeded in driving us out of
business," he said.
   The company's Web site, www.alohaairlines.com, also announced the end of
service.
   Rising fuel prices, which have forced other airlines to raise fares and
look for ways to cut expenses, also made it difficult for Aloha to
operate. Aloha, the second-largest Hawaii carrier, has operated a fleet of
26 Boeing 737s to serve five airports statewide and six mainland U.S.
destinations.
   Aloha Airgroup Inc. was forced to file for Chapter 11 protection just over
two years after it emerged from a previous trip through bankruptcy court.
   Aloha said tickets for flights after Monday will not be honored. It said
it is working to have UAL Inc.'s United Airlines accommodate passengers
with tickets for Aloha's mainland to Hawaii flights. It hopes to seat
those with interisland tickets on Hawaiian Airlines Inc.
   Aloha has canceled Monday flights from Hawaii to the West Coast and
between several cities in California and Nevada. Its last day for
interisland travel will be Monday.
   Aloha advised passengers who don't want to fly another airline and who
want a refund to contact their travel agents or credit card companies.
Those who paid by cash or check may file a claim in bankruptcy court.
   Hawaiian Airlines said it would add capacity and take all the Aloha
passengers it can on standby free, but only for four days, through April 3
   "Customers will be accommodated on a first come, first served basis based
on available seats 15 minutes prior to each scheduled departure," the
airline said.
   The shutdown will affect about 1,900 employees. The company said air cargo
services are to continue.
   A Seattle company on Thursday offered to buy Aloha's cargo operations for
an undisclosed amount. But Saltchuk Resources Inc. said it wasn't
interested in taking over Aloha's passenger business.
   Aloha Airlines was founded in 1946.
   ___
   On the Net:
   Aloha Airlines: www.alohaairlines.com
   Hawaiian Airlines: www.hawaiianair.com ----------------------------------------------------------------------
Copyright 2008 AP