Shocker! Aloha Airlines Suddenly Cancels all Flights

March 30th, 2008

 Aloha Airlines,  which just last week declared that it was going to have to file bankruptcy for the second time in three years,  has announced its ceasing operations effective pretty much immediately. When I first heard news of this last week I  thought this was going to be in it for Aloha because there was no way,  and in such a short period of time,  they were going to be able to convince a judge and creditors that  they were going to be able to perform and come out of bankruptcy yet again. I also wondered how they would ever find a buyer would be willing to step up to the plate and take over this fudging airline. I kept on seeing the news reports and all of the Aloha that poured out ,  all of the many workers and families that ralied in the end  none of that none of that could save this historic inter-Island carrier from demise. 

The sudden departure of the airlines is  sending shockwaves through Hawaii’s communities.  The first news started to break around 1:30 p.m. Hawaii time. Neither one of the daily papers in Hawaii had the story so there was not even a leak . Senator Daniel Inouye gave a very predictable comment commending Aloha Airline officials and sending his heart out to all of the Aloha employees. Gov. Lindla Lingle wants to try get a  court not to allow the shutdown of Aloha Airlines’ interisland and transpacific flight operations until Aloha has shown it has exhausted all possible avenues for continuing its operations.  The problem with Governor Lingle’s plan is that she has to go to a federal court to make this happen and it’s unlikely that a federal judge is going rule in her favor.

ALERT HAWAII-ALOHA.COM CUSTOMERS
For those of you who are our customers and are wondering what to do if you’re affected by these flight cancellations, rest assured that we are on it. We are communicating with the airlines to get everybody rescheduled as soon as possible. If you have an aloha airlines ticket and are planning to come to Hawaii make sure that  you contact us and speak to your agent immediately.  We have already  identified those passengers who are on the Aloha Airlines.  Our immediate concern are the people that are here in Hawaii right now need to get home in an ex 24 to 48 hours. Call  -800-843-8771

Letter to Aloha Employees

David Banmiller, Aloha Airlines’ president and chief executive officer, sent the following letter to Aloha employees today:
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March 30, 2008

Dear Fellow Employees:

It is with a heavy heart that, in spite of everyone’s gallant efforts, time has run out. Because of our fiduciary responsibility to creditors and the traveling public, we have no choice but to announce today the shutdown of our passenger business. Effective immediately, we will no longer sell tickets for travel beyond Monday, March 31, 2008.

Although we worked non-stop in search of a qualified buyer, no entity stepped forward due to the escalating fuel costs and the ongoing fare war. The toxic combination made investment in our passenger business too risky. And over the past week, news stories speculating about our demise made it more and more difficult for us to keep our passenger business going.

In an effort to protect thousands of our passengers holding reservations for Spring Break travel, we’ve decided to maintain our schedule through March 31, 2008. On that last day we will not operate the entire schedule. We’ve cancelled the eastbound transpac and short-haul flights on the mainland. Rest assured we have secured transportation for all crewmembers on duty to get them home.

We know we can depend on you to hold your head high right up to the end.

From the time I arrived until today, everyone has worked hard to carry on this Company’s proud tradition and keep the spirit of aloha alive. There are no words to convey our gratitude to you and your families for your sacrifices and everything you have done for the Company. Thanks to you, we have earned the respect of loyal customers, and the support of the shareholders who have stood by us in tough times. What is most anguishing is that despite everyone’s heroic effort, forces beyond our control forced us to shut down our passenger operation.

We will continue to work with the U.S. Bankruptcy Court to seek bidders so that we can continue to keep the air cargo and contract services businesses going and preserve as many jobs as possible.

God bless,

David A. Banmiller

Entry Filed under: Big Island, Kauai, Maui