Aloha Airlines said Sunday it will halt all passenger service after today, signaling the end of an airline that has served Hawaii for more...
HONOLULU — Aloha Airlines said Sunday it will halt all passenger service after today, signaling the end of an airline that has served Hawaii for more than 60 years.
Aloha, which filed for Chapter 11 bankruptcy protection March 20, was a casualty of fierce competition and rising fuel prices.
“We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business,” Aloha President David Banmiller said in a statement.
Founded in 1946, Aloha has suffered since Phoenix-based Mesa Air Group began interisland carrier go! airlines in 2006, creating an airfare war.
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In January, go! reported a $20 million operating loss in its first 16 months of operations. Meanwhile, Aloha and Hawaiian Airlines reported combined losses of nearly $65 million since go! began.
Aloha’s bankruptcy filing said the airline was unable to generate sufficient revenue due to what it called “predatory pricing” by go!
Aloha, the second-largest Hawaii carrier, has a fleet of 26 Boeing 737s to serve five airports statewide and six mainland U.S. destinations.
It was forced to file for Chapter 11 protection just two years after it had emerged from a previous trip through bankruptcy court.
Aloha said it is working to have United Airlines accommodate passengers with tickets for Aloha’s mainland to Hawaii flights. It hopes to seat those with interisland tickets on Hawaiian Airlines.
Aloha canceled flights today from Hawaii to the West Coast. Interisland flights end after today.
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 through Friday.
The shutdown will affect about 1,900 employees.
The company said air-cargo services are to continue.
Seattle-based Saltchuk Resources has offered to buy the cargo operations.
On Sunday, Aloha’s Web site signed off with the words, “Mahalo Nui Loa — Aloha Oe” which means “Thank you — Farewell” in Hawaiian.