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.