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Aloha Airlines Requests Chapter 11 Bankruptcy Protection March 21, 2008

Posted by Andrew in Aloha Airlines, Go! Airlines, Mesa.
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Aloha Bankruptcy Header

Credit: Aloha Airlines

Honolulu based Aloha Airlines filed for Chapter 11 bankruptcy protection yesterday, citing increasingly competitive competition in the Hawaiian inter-island market. In a written statement, the carrier alleged “its inability to generate sufficient revenues from its inter-island passenger business [was] due to predatory pricing by Mesa Air Group’s go! airline.” Aloha cited the combination of go!’s predatory pricing and astronomically expensive fuel prices, which reached a high of $111 a barrel last week, as reasoning for filing for protection from its creditors. The carrier plans to keep operating under bankruptcy protection, and has already lined up financing from the General Motors Acceptance Corporation. Aloha employs 3500 employees, and is an important piece of inter-island cargo operations within Hawaii. In a press release, Aloha Airlines CEO David A. Banmiller further condemned Mesa’s go!’s pricing practices, writing: “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.”

Source: PR Newswire