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Aloha Airlines Declares Bankruptcy

March 24, 2008

Honolulu-based Aloha Airlines last week said it was in discussions to sell all or some of the carrier's operations after it filed for Chapter 11 bankruptcy protection. The carrier had emerged from bankruptcy just two years prior. For sale are the carrier's passenger services, air cargo and contract services, including U.S. mail shipments, according to the Associated Press.

Aloha blamed predatory pricing by Mesa Air Group's go! airline for its financial difficulties. Phoenix-based go! entered the Hawaiian market in 2006 and competes with Aloha and Hawaiian Airlines Inc. Aloha and Hawaiian have reportedly lost nearly $65 million since go! began operations. State lawmakers said they are prepared to look into legislation that may assist Aloha, as the carrier provides 3,500 jobs.

"Aloha Airlines is an important business for our state, our economy, and our people," said House Speaker Calvin Say, D-St. Louis Heights-Wilhelmina Rise. "Moreover, Aloha Airlines has been a good corporate citizen and generous contributor of long-standing in our community."

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