Hope fades fast for Aloha Airlines

March 31st, 2008

A federal judge today rebuffed a state effort to keep Aloha Airlines flying despite the company’s decision over the weekend to end passenger service.

U.S. Bankruptcy Judge Lloyd King said Aloha’s move to end passenger service at the end of the day today was a business decision by the company.

The state had asked the court this afternoon to prohibit Aloha from closing its passenger flight business until the company has shown it has exhausted alternatives for continuing its operations.

The airline announced yesterday that it was ending all flights after today.

The suddenness of Aloha’s going out of business — it filed for Chapter 11 bankruptcy protection March 20 — caused Gov. Linda Lingle to question whether its finances were as dire as they’re being made to appear.

“Nobody can tell at this point if it’s too late,” Lingle said. “We don’t know what the cash position is of Aloha Airlines.”

But Judge King this afternoon said the company appeared to have made a good-faith effort to remain operating, and declined to force it to continue flying passengers.

Entry Filed under: Oahu