http://www.alohaairlines.com/about/p...ode=show&ak=34

 

Not good. I sure hope that Aloha will be able to hold the company together long enough to have their day in court; it's their last hope.

 

Kinda surprised that they straight up named Mesa in their press release.

 

Yep...no hiding their bitterness. But the more the laymen know in this case, the better.

 

http://www.bizjournals.com/sacrament...7/daily49.html

Citing losses from the lengthy interisland airfare war triggered by go! airlines, Aloha Airlines on Thursday filed for Chapter 11 bankruptcy protection.


It is the second bankruptcy in three years for Aloha, the second-largest Hawaii-based airline and one of two carriers that flies directly to Hawaii from Sacramento International Airport.


Aloha reservation agents said late Thursday that flights would continue as scheduled on Friday. Aloha, which made the announcement late Thursday, said it will seek court approval to allow the company to continue operations.

The 61-year-old, privately-owned airline has 3,500 employees.
Aloha, go! and the Hawaii's biggest airline, Hawaiian Airlines, have engaged in an intense competition since go! entered the local market in June 2006 and began charging fares well below prevailing ticket prices.
Aloha President and CEO David Banmiller laid the blame for Aloha's financial troubles squarely on go!, a subsidiary of Phoenix-based Mesa Air Group (Nasdaq: MESA).

"It is a travesty that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action," Banmiller said in a statement announcing the bankruptcy.

Aloha and Hawaiian were often forced to match go!'s one-way interisland fares, which have averaged $39 but have also listed for as low $1.
The fare war has come as the cost of jet fuel has rapidly increased, eating away the meager profits reported by the local airlines.

Last Oct. 20, a federal bankruptcy judge in Honolulu awarded Hawaiian Airlines $86.9 million in damages, costs and legal fees in a case involving Mesa's misuse of Hawaiian's financial information.

In 2006, Aloha filed a similar lawsuit against Mesa, saying it obtained confidential information about Aloha when it considered buying the airline. The case is still pending.

Aloha last entered bankruptcy in December 2004 and emerged a year later after lining up new financing and new agreements with its employee unions. It is unclear what further steps the airline could take with employees or lenders to counter the continued losses Aloha has reported.
Following Aloha's bankruptcy announcement, Mark Dunkerley, president and CEO of Hawaiian, said: "The action taken by Aloha Airlines today reflects the difficult operating environment in Hawaii's airline industry."

 

oh bugger.... I hate to see any airline go belly up.... That means some poor pilot got the F word.