Aloha Seeks Bankruptcy Protection
The parent company of Aloha Airlines filed for Chapter 11 bankruptcy protection late Thursday, to help bring costs in line with competitors who already have filed for bankruptcy protection, reported the Associated Press.
David A. Banmiller, president and chief executive of Aloha Airgroup Inc. cited higher operating costs such as fuel prices and the need to renegotiate aircraft leases as the primary factor in the decision to file. “Unfortunately, this is an airline and the airline industry in general is in life support.”, he said.
Banmiller said reservations for future travel will be taken, tickets will be honored, and flights will operate as scheduled.
Privately held Aloha is now the fifth U.S. commercial carrier operating under Chapter 11.
Besides the management cuts and job freezes, Aloha this month also announced plans to cut its twice-weekly flights to American Samoa and to the Marshall Islands next month. The carrier would still operate interisland routes and flights to California, Nevada and Vancouver, British Columbia.
Charles Kao
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