Aloha Airlines files for Bankruptcy

[Konaguy]

http://pacific.bizjournals.com/pacific/stories/2004/12/27/daily24.html?jst=b_ln_hl

LATEST NEWS
4:52 PM HST Thursday
Aloha Airlines files for bankruptcy
Prabha Natarajan

Aloha Airgroup Inc., parent company of Aloha Airlines, filed for voluntary Chapter 11 and reorganization bankruptcy Thursday afternoon.

It listed 20 unsecured creditors, the top being First Hawaiian Bank with $42.8 million in trade debt.

The Air Transportation Stabilization Board, which gave the company a $45 million loan after the Sept. 11, 2001, terrorist attacks to upgrade systems and expand, is the second highest claimant with $24.1 million.

The third largest debt owed is also with First Hawaiian, on a nearly $13 million line of credit. It also owes the bank $8.5 million for a term loan.

[Miulang]

What I wanna know is why it took 'em so long to do it! :p HAL is on the verge of emerging from bankruptcy soon. I think Aloha expanded too fast (all those flights up here to the Mainland) and then they priced themselves out of the local market too, divested themselves of Island Air...sheesh.

No worry. Aloha not going disappear. Dis just one game all da airlines play to get concessions from their workers...

Miulang

[Keith H.]

http://pacific.bizjournals.com/pacific/stories/2004/12/27/daily24.html?jst=b_ln_hl

LATEST NEWS
4:52 PM HST Thursday
Aloha Airlines files for bankruptcy
Prabha Natarajan

Aloha Airgroup Inc., parent company of Aloha Airlines, filed for voluntary Chapter 11 and reorganization bankruptcy Thursday afternoon.

&!@#$!! I go up to Vegas on Aloha late next month! :mad:

[Miulang]

&!@#$!! I go up to Vegas on Aloha late next month! :mad:
You don't have to worry about not having a plane to fly to Vegas in; this is all BS just to get the creditors off Aloha's back and to try to win some give back concessions from its employees. It's been happening throughout the industry.

Miulang

[Keith H.]

You don't have to worry about not having a plane to fly to Vegas in; this is all BS just to get the creditors off Aloha's back and to try to win some give back concessions from its employees. It's been happening throughout the industry.

Miulang

It's not getting up to Vegas I'm worried about, Miulang, it's getting back. :)

I know it's been happening, with varying degrees of success, no doubt. Just heard on NPR that the flight attendants for United are prepared to "wildcat" strike if the bankruptcy court voids their contract. Not a good sign for United. All those Mileage Plus miles I accumulated on United going back and forth from Oregon to here, twice a year for four years, might just go poof real soon. (I lost about 2/3 of them for non-use, but hey...earned is earned.)

[Konaguy]

The airline has retained Giuliani Advisors to assist in exploring strategic alternatives to maximize value through the Chapter 11 process. (http://pacific.bizjournals.com/pacific/stories/2004/12/27/daily24.html?jst=b_ln_hl)

I wonder, if you read between the lines, that we might be seeing another merger attempt of Hawaiian and Aloha Airlines

[Miulang]

I wonder, if you read between the lines, that we might be seeing another merger attempt of Hawaiian and Aloha Airlines HAL and Aloha can talk all they want; I don't think the feds will go for it. However, now that Island Air is a semi-viable alternative interisland-wise, it might not be as impossible as it was previously. Neither airline is making money on the interisland stuff; it's the long haul trips where they make their profits. However, ATA, which is the chief charter carrier for Pleasant Hawaiian Holidays, might not last much longer, so if HAL gets that charter business back, that'll make them even more profitable (they should be emerging from their own bout of Chapter 11 sometime this year).

Miulang

[slippahs]

No matter what talk might happen between these two, Hawaiian's CEO Mark Dunkerley has made it clear that a merger would not happen based on the carrier's two financial situations in a recent interview taken on KHON. HA claims to reemerge from bankruptcy sometime this month, but I doubt that. The two carriers have to learn that the way they see the inter-island market just isn't working. Now, with Southwest acquiring ATA, who knows how the Mainland-Hawai'i markets will change, and what other changes will result if a bankrupt carrier (namely United or even Delta, who's on the verge of filing for Chapter 11, for that matter) goes under.

[Mocha]

Do we start exercising so we can paddle to the Big Island (mainland). With
the fuel costs, what is the next to go! :eek:

[Miulang]

No matter what talk might happen between these two, Hawaiian's CEO Mark Dunkerley has made it clear that a merger would not happen based on the carrier's two financial situations in a recent interview taken on KHON. HA claims to reemerge from bankruptcy sometime this month, but I doubt that. The two carriers have to learn that the way they see the inter-island market just isn't working. Now, with Southwest acquiring ATA, who knows how the Mainland-Hawai'i markets will change, and what other changes will result if a bankrupt carrier (namely United or even Delta, who's on the verge of filing for Chapter 11, for that matter) goes under.
Today they are reporting that Southwest Airlines may want to venture into the Hawai'i market now that they have purchased some of the bankrupt ATA assets. Of course, more than likely that will be the tourist charter business. If they tried to enter the local interisland market, I think they'd have to reconfigure their planes. Southwest is the one that will refuse to board a passenger if they don't think they will fit into a seat. And we all know that Hawai'i has a lot of ample bottoms walking around. They're being sued by some ample girthed people for weight discrimination.

Miulang
http://the.honoluluadvertiser.com/article/2005/Jan/05/bz/bz08p.html

[Miulang]

This plan sounds a little too aggressive to me, but the CEO of Aloha believes the airline can emerge from bankruptcy as soon as this fall. Of course, all its employees have had to make major pay concessions, so it might be a solvent airlines, but how happy will its employees be?

Miulang

http://the.honoluluadvertiser.com/article/2005/Jan/22/bz/bz05p.html

[Miulang]

So as Aloha tries to reorganize, they're adding more flights between Hawai'i and the Mainland? Are they cutting service to the local people? If they are, I would raise a big stink because they should be catering to your needs, not the tourists. Of course, come to think of it, there are so many Hawaii ex-pats up here, maybe they could actually make money on those flights! :)

Miulang

http://the.honoluluadvertiser.com/article/2005/Jan/26/br/br09p.html

[Miulang]

I hope people who normally fly on Aloha and want to buy tickets after Feb. 28 have ways to buy those tickets without using the VISA, Mastercard and Amex bank cards.

First Hawaiian Bank (processes Mastercard and VISA) and American Express have given Aloha until the end of this month to fulfill its obligations to both companies or they will refuse to accept charges placed on those cards.

Hmmm....the Discover card sounds more and more like a good thing now... :eek:

Miulang