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Aloha Airlines Shuts Down

Aloha Airlines has shut down, after filing for Chapter 11 bankruptcy in late March.


By Don Douloff, April 3, 2008

Aloha Airlines has shut down, after filing for Chapter 11 bankruptcy in late March. The airline, which has served Hawaii for more than 60 years, was the victim of fierce competition and rising fuel costs.

“We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business,” says Aloha president David Banmiller in a statement.

Citing “unfair competition,” Banmiller said, “we had no choice but to take action.” In 2006, Phoenix-based Mesa Air Group Inc. launched Go! Airlines, an inter-island carrier that ignited a local airfare battle.

Aloha is working with United Airlines to accommodate passengers holding mainland-to-Hawaii flights. The airline hopes to seat passengers with inter-island tickets on Hawaiian Airlines.

Aloha’s last day of service was March 31.



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