Another Carrier Bites The Dust

ANN has learned that Aloha Airlines will shut down its passenger operations later today. With this, a "61-year tradition of service to Hawaii" ends.

Aloha Airlines announced that it will be shutting down its inter-island and transpacific passenger flight operations with the last day of operations being today, Monday, March 31, 2008. Today, Aloha will operate its schedule with the exception of flights from Hawaii to the West Coast and flights from Orange County to Reno and Sacramento, and Oakland to Las Vegas. Code-share partner United Airlines and other airlines are prepared to assist and accommodate Aloha's passengers who have been inconvenienced.

The shutdown of Aloha's passenger operations will affect about 1,900 employees. Aloha also announced that its air cargo and aviation services units will continue to operate as usual while the U.S. Bankruptcy Court seeks bids from potential buyers. On March 27, 2008, Saltchuk Resources, Inc., announced its intention to buy Aloha?s air cargo business.

"This is an incredibly dark day for Hawaii," said David A. Banmiller, Aloha's president and chief executive officer. "Despite the groundswell of support from the community and our elected officials, we simply ran out of time to find a qualified buyer or secure continued financing for our passenger business. We had no choice but to take this action."

"We deeply regret the impact this will have on our dedicated employees who have made Aloha one of the best operating airlines in the country." Aloha Airlines was founded in 1946.

Aloha blames the "unfair competition (that have) succeeded in driving us out of business, bringing to an end a 61-year-old company with a proud legacy of serving millions of travelers in the true spirit of Aloha. We realize that this comes as a devastating disappointment to our frequent flyers and our loyal business partners who have supported this company for many, many years."

FMI: www.alohaairlines.com