Aloha Files for Chapter 11
03-20-2008, 09:37 PM
#3
Gets Weekends Off
Joined APC: Apr 2007
Posts: 211
Here's another article...http://ap.google.com/article/ALeqM5g...frrpQD8VHK1880
By GREG SMALL – 31 minutes ago
HONOLULU (AP) — Aloha Airlines filed for Chapter 11 bankruptcy protection Thursday, a little more than two years after emerging from bankruptcy.
Aloha said it will continue to fly as long as a bankruptcy court accepts the airline's financial plan to keep operating.
The airline said in its filing that it was unable to generate sufficient revenue due to what it called "predatory pricing" by Mesa Air Group Inc.'s go! airline.
Aloha Airgroup Inc. emerged from bankruptcy protection in February 2006, just 14 months after filing under Chapter 11.
Phoenix-based Mesa Air Group launched go! into the interisland market later in 2006 to compete with Aloha, as well as Hawaiian Airlines Inc.
In January, go! reported a $20 million operating loss in its first 16 months of operations. Meanwhile, Aloha and Hawaiian reported combined losses of nearly $65 million since go! began operating.
Aloha said it was forced to match go!'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel.
"It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action," said David A. Banmiller, Aloha's president and chief executive officer.
Mesa Air Group CEO Jonathan Ornstein declined comment, saying the company had not yet read the filing.
In October, a U.S. bankruptcy judge ordered Mesa to pay Hawaiian Airlines $80 million for using confidential information it obtained from Hawaiian's own bankruptcy proceedings to launch go!. Mesa is appealing the ruling. Hawaiian emerged from bankruptcy in June 2005.
Aloha said it will ask a bankruptcy court to approve a financing arrangement with General Motors Acceptance Corp. that will allow the privately held airline to continue operating.
"Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for Aloha, and to continue to earn the support of our loyal customers, business partners, vendors and financial backers."
Mark Dunkerley, president and CEO of Hawaiian Airlines, said Aloha's bankruptcy filing reflects the difficult operating environment in Hawaii's airline industry.
"It is extremely challenging and marked by high operating costs, record high fuel prices and a very competitive pricing structure," Dunkerley said.
Gov. Linda Lingle said she was concerned over the future of Aloha's employees in the wake of the airline's bankruptcy filing.
"I am hopeful that this action will allow Aloha Airlines to successfully emerge from reorganization as they have done in the past," she said. "The continued, uninterrupted service of the airline is in the best interest of the employees, Hawaii residents and visitors and our state's economy."
Aloha operates a fleet of 26 Boeing 737s to serve five Hawaiian airports and six mainland U.S. destinations.
***My dad flew Aloha, and I flew Hawaiian inter-island about two weeks ago. All 4 combined flights that we took were full. The service was great. The planes were clean. The flight crews were very friendly. It was more pleasant flying them than flying on a lot of the mainland flights that I have recently been on.
By GREG SMALL – 31 minutes ago
HONOLULU (AP) — Aloha Airlines filed for Chapter 11 bankruptcy protection Thursday, a little more than two years after emerging from bankruptcy.
Aloha said it will continue to fly as long as a bankruptcy court accepts the airline's financial plan to keep operating.
The airline said in its filing that it was unable to generate sufficient revenue due to what it called "predatory pricing" by Mesa Air Group Inc.'s go! airline.
Aloha Airgroup Inc. emerged from bankruptcy protection in February 2006, just 14 months after filing under Chapter 11.
Phoenix-based Mesa Air Group launched go! into the interisland market later in 2006 to compete with Aloha, as well as Hawaiian Airlines Inc.
In January, go! reported a $20 million operating loss in its first 16 months of operations. Meanwhile, Aloha and Hawaiian reported combined losses of nearly $65 million since go! began operating.
Aloha said it was forced to match go!'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel.
"It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action," said David A. Banmiller, Aloha's president and chief executive officer.
Mesa Air Group CEO Jonathan Ornstein declined comment, saying the company had not yet read the filing.
In October, a U.S. bankruptcy judge ordered Mesa to pay Hawaiian Airlines $80 million for using confidential information it obtained from Hawaiian's own bankruptcy proceedings to launch go!. Mesa is appealing the ruling. Hawaiian emerged from bankruptcy in June 2005.
Aloha said it will ask a bankruptcy court to approve a financing arrangement with General Motors Acceptance Corp. that will allow the privately held airline to continue operating.
"Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for Aloha, and to continue to earn the support of our loyal customers, business partners, vendors and financial backers."
Mark Dunkerley, president and CEO of Hawaiian Airlines, said Aloha's bankruptcy filing reflects the difficult operating environment in Hawaii's airline industry.
"It is extremely challenging and marked by high operating costs, record high fuel prices and a very competitive pricing structure," Dunkerley said.
Gov. Linda Lingle said she was concerned over the future of Aloha's employees in the wake of the airline's bankruptcy filing.
"I am hopeful that this action will allow Aloha Airlines to successfully emerge from reorganization as they have done in the past," she said. "The continued, uninterrupted service of the airline is in the best interest of the employees, Hawaii residents and visitors and our state's economy."
Aloha operates a fleet of 26 Boeing 737s to serve five Hawaiian airports and six mainland U.S. destinations.
***My dad flew Aloha, and I flew Hawaiian inter-island about two weeks ago. All 4 combined flights that we took were full. The service was great. The planes were clean. The flight crews were very friendly. It was more pleasant flying them than flying on a lot of the mainland flights that I have recently been on.
03-20-2008, 09:40 PM
#4
Gets Weekends Off
Joined APC: Apr 2007
Posts: 211
and another...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."
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."
03-21-2008, 11:09 AM
#5
Gets Weekends Off
Joined APC: Jul 2007
Position: E190
Posts: 103
Pilots Guild of America
It is time we started an American Pilots Guild to stop this undercutting travesty. One seniority list, one pay scale, one shop.
Think this is a pipe dream?
If actors can do it why can't we?
People like JO, Ichan, and Lorenzo would have no power and their true skills as a business manager would show instead of just grinding their employees and contractors to nothing.
Think this is a pipe dream?
If actors can do it why can't we?
People like JO, Ichan, and Lorenzo would have no power and their true skills as a business manager would show instead of just grinding their employees and contractors to nothing.
03-21-2008, 11:39 AM
#6
Gets Weekends Off
Joined APC: Feb 2008
Position: Yes & Yes!
Posts: 127
Not in your wildest dreams!!!!
It is time we started an American Pilots Guild to stop this undercutting travesty. One seniority list, one pay scale, one shop.
Think this is a pipe dream?
If actors can do it why can't we?
People like JO, Ichan, and Lorenzo would have no power and their true skills as a business manager would show instead of just grinding their employees and contractors to nothing.
Think this is a pipe dream?
If actors can do it why can't we?
People like JO, Ichan, and Lorenzo would have no power and their true skills as a business manager would show instead of just grinding their employees and contractors to nothing.
03-21-2008, 03:21 PM
#9
AAmerican Way for AA Pay
Joined APC: Oct 2005
Position: B-737 Pilot
Posts: 1,617
Mesa Go! was advertising in HNL papers for $19 fares, to and from out islands where Hawaiian/Aloha charge $90-$100 a seat. Undercutting isn't the word, nor is predatory. It is totally insane and obvious what go! is doing.
A 737/717 is much more efficient to operate on inter-island than a 50-seat RJ.
A 737/717 is much more efficient to operate on inter-island than a 50-seat RJ.
03-21-2008, 04:29 PM
#10
Gets Weekends Off
Joined APC: Jul 2007
Posts: 162
the clock is ticking.....
"Aloha Airlines Inc. told a federal bankruptcy court today it is seeking a buyer for some or all of its major business segments, including its passenger service"
http://starbulletin.com/breaking/breaking.php?id=6866
Aloha said it was down to $3.5 million in cash and that its expenses over then next 10 days would eat away about $2.3 million of that. Yucaipa said it is unwilling to provide further financing.
http://www.honoluluadvertiser.com/ap...j2KbK9GMMZo%3D
"Aloha Airlines Inc. told a federal bankruptcy court today it is seeking a buyer for some or all of its major business segments, including its passenger service"
http://starbulletin.com/breaking/breaking.php?id=6866
Aloha said it was down to $3.5 million in cash and that its expenses over then next 10 days would eat away about $2.3 million of that. Yucaipa said it is unwilling to provide further financing.
http://www.honoluluadvertiser.com/ap...j2KbK9GMMZo%3D
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