March 31st, 2008
Aloha Airlines Files Chapter 11 Bankruptcy & Cancels All Flights Indefinitely
Sadly Aloha Airlines has announced that they will be closing their passenger flight service and all flights after March 31st have been canceled. We here at Hawaii Aloha Travel are making every effort to be proactive and secure alternate flight options for our customers.
What does this mean for our Hawaii Aloha Travel customers with tickets paid in full on Aloha Airlines? Unfortunately based on what we know today - those customers will lose their Aloha Airlines tickets and will need to file a refund claim with the state bankruptcy court. In the meantime, those travelers will need to purchase new tickets on another airline. For inter-island flights that will mean booking new flights on either Hawaiian Airlines, Mesa/Go! Airlines, or Island Air.
It is too early to say whether or not Aloha Airlines will refund any of the money for lost flights. My recommendation is to complete the refund claim form and send it to the bankruptcy court as soon as possible and then stay tuned for more information from Aloha Airlines. Hawaii Aloha Travel customers can contact their travel agent for a copy of the bankruptcy claim form which needs to be completed by July 22, 2008.
What about those customers that have reservations with Hawaii Aloha Travel that are not yet paid in full and just have deposits paid? For these travelers we are able to find alternate flight options on Hawaiian, Mesa/Go!, or Island Air. In most cases this will mean an increase of $6 - $44 per person for the new flights but keep in mind with Aloha out of business this really is your only option.
Hawaii Governor Linda Lingle said today that the state was asking a bankruptcy court judge to prohibit Aloha from closing its passenger flight business until the company has shown it has exhausted alternatives for continuing its operations. Before Aloha announced that they were ending all flights after today Hawaii state senators were crafting measures that would provide $50 million worth of loan guarantees in addition to tax breaks for Aloha. People familiar with the bankruptcy case said the airline’s hand was forced because its existing lenders were unwilling to put more money into passenger operations, no other lenders were interested in filling that void and no airline or investor group was willing to purchase the passenger operation or the entire company. The airline said yesterday that its unrestricted cash had dwindled from $3.8 million on March 20 to $900,000 as of yesterday.
We can definitely hope for the best that Aloha Airlines will be able to successfully emerge from reorganization as they have done in the past. As I mentioned earlier we here at Hawaii Aloha Travel would rather not wait and are moving quickly to find alternate flights while they are still available at reasonable prices.