Hawaii News: Aloha Files Ch. 11 Again...

[RJP]

Bad news continues to come from the islands. Best of luck to everyone at AQ! Hope this is just another bump in the road.

Updated at 4:23 p.m., Thursday, March 20, 2008
Aloha Airlines files for bankruptcy


Advertiser Staff

Aloha Airlines filed for bankruptcy protection today for the second time in just over 3 years.

The state's No. 2 carrier filed for Chapter 11 reorganization with the U.S. Bankruptcy Court in Honolulu.

Aloha has been hurt recently by low-interisland airfares and high fuel costs.

Updated at 4:57 p.m., Thursday, March 20, 2008
Aloha Airlines files for bankruptcy

StoryChat: Comment on this story

Advertiser Staff

Aloha Airlines filed for bankruptcy protection today for the second time in just over three years.

The state's No. 2 carrier filed for Chapter 11 reorganization with the U.S. Bankruptcy Court in Honolulu.

Aloha has been hurt recently by low-interisland airfares and high fuel costs.

The airline said it hopes to protect the jobs of its 3,500 employees, honor all travel reservations and keep air cargo moving between the Islands.

In its filing, Aloha said it wasn't making enough money off inter-island routes because of "predatory pricing by Mesa Air Group's go! airline."

"In the highly competitive inter-island market, Aloha was forced to match go!'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel," the company said

"It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action," said David A. Banmiller, Aloha's president and CEO, in a statement. "Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for Aloha, and to continue to earn the support of our loyal customers, business partners, vendors and financial backers."

Aloha said it will seek the court's approval to continue operating with financing from its principal working capital lender, General Motors Acceptance Corp.

Mark Dunkerley, president and CEO of Hawaiian Airlines, the state's No. 1 carrier, issued a written statement.

"The action taken by Aloha Airlines today reflects the difficult operating environment in Hawaii's airline industry," Dunkerley said. "It is extremely challenging and marked by high operating costs, record high fuel prices and a very competitive pricing structure."

"Fortunately at Hawaiian Airlines we have made many tough operating decisions in the past year and customers have responded positively. We know the local airline industry will continue to change and I'm confident that our employees are up to the challenge."

 

[islandhopper]

Life goes on. Comfort your new wife, assure her all will be good, With or without Aloha. We fought the good fight!

(I am getting a room for the LAX Air Inc conference next weekend, wanna split the rate?)

 

[Freight Dog]

Mark Dunkerley, president and CEO of Hawaiian Airlines, the state's No. 1 carrier, issued a written statement.

"The action taken by Aloha Airlines today reflects the difficult operating environment in Hawaii's airline industry," Dunkerley said. "It is extremely challenging and marked by high operating costs, record high fuel prices and a very competitive pricing structure."

"Fortunately at Hawaiian Airlines we have made many tough operating decisions in the past year and customers have responded positively. We know the local airline industry will continue to change and I'm confident that our employees are up to the challenge."

That's the fundamental difference between a company ran by visionaries who know the airline business and grocery idiots who have as much clue about running an airline as I do running a grocery store.

 

[whymeworry?]

Frankly, I think you guys will be just fine. This is more of a defensive step on the part of your mangement rather than a move of desperation.

Better they preserve cash while the oil markets are volitile.That said, why wasn't mgmt hedging fuel last year when prices were lower. Honestly, our managements ought to be burned at the stake for being such morons about their most precious and equally highest cost.

 

[Poahi]

That's the fundamental difference between a company ran by visionaries who know the airline business and grocery idiots who have as much clue about running an airline as I do running a grocery store.

Well said.

 

[Mr Wu]

Any idea about the fate of the guys in class right now?

 

[Hikoushi]

How about this?

Step 1: File Chapter 11.

Step 2 (optional): Sell company to highest bidder, who has probably already been making offers.

Step 3: Sue Mesa, now with a ROCK SOLID case, for WAY more money, putting them out of business.

Step 4: Come out of Chapter 11 and get new planes.

 

[Trash8Mofo]

Step 1: File Chapter 11.

Step 2 (optional): Sell company to highest bidder, who has probably already been making offers.

Step 3: Sue Mesa, now with a ROCK SOLID case, for WAY more money, putting them out of business.

Step 4: Come out of Chapter 11 and get new planes.

You are delusional!

damnnit! Where is the bar tender!

 

[Freight Dog]

Step 1: File Chapter 11.

Step 2 (optional): Sell company to highest bidder, who has probably already been making offers.

Step 3: Sue Mesa, now with a ROCK SOLID case, for WAY more money, putting them out of business.

Step 4: Come out of Chapter 11 and get new planes.

:beer:

 

[Poahi]

Step 1: File Chapter 11.

Step 2 (optional): Sell company to highest bidder, who has probably already been making offers.

Step 3: Sue Mesa, now with a ROCK SOLID case, for WAY more money, putting them out of business.

Step 4: Come out of Chapter 11 and get new planes.

Unfortunately, this is the mindset Banmiller has and has had for years. Blaming fuel costs and go! isn't going to return Aloha to profitability. Even if Aloha wins the case against Mesa, Mesa will file bankruptcy and Aloha gets nothing. Also,. Hawaiian didn't win on a predatory pricing claim.

If go! were to leave today, Aloha still woudn't be profitable.

Hawaiian, on the other hand, actually had a plan and is profitable. They executed it and won their case and was able to get their judgement backed by cash. Aloha intentionally delayed the trial as a tactic to see how Hawaiian did and actually saw Hawaiian take any chance they had of receiving damages. Hawaiian has leadership.

Aloha needs to shed its leadership and create a plan that returns it to profitability. Blame isn't going to fix this. It also explains the attrition.

Old planes, marginal routes and weak leadership. My heart goes out to the Aloha people and I hope that change happens because we need Aloha.

 

[RJP]

Unfortunately, this is the mindset Banmiller has and has had for years. Blaming fuel costs and go! isn't going to return Aloha to profitability. Even if Aloha wins the case against Mesa, Mesa will file bankruptcy and Aloha gets nothing. Also,. Hawaiian didn't win on a predatory pricing claim.

If go! were to leave today, Aloha still woudn't be profitable.

Hawaiian, on the other hand, actually had a plan and is profitable. They executed it and won their case and was able to get their judgement backed by cash. Aloha intentionally delayed the trial as a tactic to see how Hawaiian did and actually saw Hawaiian take any chance they had of receiving damages. Hawaiian has leadership.

Aloha needs to shed its leadership and create a plan that returns it to profitability. Blame isn't going to fix this. It also explains the attrition.

Old planes, marginal routes and weak leadership. My heart goes out to the Aloha people and I hope that change happens because we need Aloha.

Best post to date. Well said. Unfortunately, they (management) aren't in the business of making money there for some reason.

Sometimes it feels like they're just crossing their fingers and hoping that something good will happen. Let's hope this is a defensive move, but Hikoushi, who is going to buy AQ? And why?

Hang in there gents!

 

[YMICFI]

Thoughts

Any idea about the fate of the guys in class right now?

Any thoughts on this? There are 10 in class right now. There are another 8 that just finished training. What can they expect?

 

[brokedash]

If it is any condolence JO is about to get the boot from the Chinese venture...so say some strong pilot rumors.

Oh, BTW GO! is still a money draining proposition for JO, just as it has since day 1. You should see how cheap the next batch of GO! planes will look. All white except for GO! stickers.

 

[RJP]

All white except for GO! stickers.

Already on the ramp.

 

[fly4surf]

WOW.
It never ceases to amaze me over there.
Best of luck to you guys.
I agree with the thought that this is just a defensive move to deal with the losses from fuel/go. Hope so anyway, for what do I know.

 

[whymeworry?]

BTW, only 2 pilot groups stood up to mgmt in the post 9/11 concessionary years. DL and AQ. UAL, NW, CAL, all folded under the fear of mgmt's threats.

You guys and gals are to be commended for that. Take mgmt to the mat once again if they plan on using pilots as their cash-flow control valve.

"NO PILOTS, NO ALOHA"

My buddy there sent me that shirt. I still wear it at least once a week here in TX.

 

[G100driver]

Good luck guys/gals. I have always thought you were a class act.

 

[Hikoushi]

Let's hope this is a defensive move, but Hikoushi, who is going to buy AQ? And why?

Mark my words. It may or may not work, but they will try. This could be an OFFENSIVE move, not a defensive one. KILL GO!


As for your question...

Step 2:

Aloha Airlines in talks to sell all or parts of company

[FONT=Trebuchet MS, Verdana][SIZE=-2][FONT=Trebuchet MS, Verdana][SIZE=-2]Rick Daysog
Advertiser Staff Writer[/SIZE][/FONT]
[/SIZE][/FONT]
[FONT=Times New Roman, Times, serif]
Aloha Airlines today said it is in discussions with several parties to sell the entire airline or parts of it.
[/FONT][FONT=Times New Roman, Times, serif]
Aloha, the state's second-largest carrier, filed for Chapter 11 bankruptcy protection yesterday with assets and liabilities both in excess of $100 million. Aloha also blamed unfair competition by low-cost carrier go!.
In a hearing in U.S. Bankruptcy Court this morning, Aloha said it was down to $3.5 million in cash and that its expenses over the next 10 days would eat away about $2.3 million of that.
Aloha said its main investor, Yucaipa Co., had plowed more than $110 million in the airlines since it emerged from bankruptcy in February 2006. Yucaipa said it is unwilling to provide further financing. During the hearing, U.S. Bankruptcy Judge Lloyd King granted Aloha permission to pay some of its daily operating costs, such as utility bills and wages. King will hold further hearings this afternoon on Aloha's agreement with lenders to secure more financing.
[/FONT]
http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20080321/BREAKING03/80321040

 

[Junkflyer]

I've heard the class in ground school was furloughed.

 

[go!ng for broke]

http://starbulletin.com/2008/03/22/news/story03.html