Aloha Airlines vowed to continue “business as usual” in spite of
the Chapter 11 filing by the airline and parent company Aloha Air
Group Dec. 30. That will include the continuation of the airline’s
full schedule, frequent flyer program and alliance and interline
agreements. Reservations, ticketing and refunds also will continue
“It will be business as usual as we move forward to complete the
restructuring of our company,” said David Banmiller, Aloha’s
president and CEO, on the day of the filing.
In seeking bankruptcy protection for its restructuring, the
company struck deals for debtor-in-possession loans of $2 million
from Aloha Securities and $1 million from The Ing Family
Aloha blamed part of its problems on high fuel costs, which
resulted in a $24 million or 48% year-over-year increase in fuel
expenses through November, as well as fare-lowering competition on
transpacific routes from mainland carriers.
Aloha is the state’s largest provider of inter-island air
services, with about 620 flights per week between Honolulu;
Kahului, Maui; Kona and Hilo, Hawaii; and Lihue, Kauai, and it also
operates about 140 transpacific flights a week.
Aloha’s filing means that, for the time being, Hawaii has two
airlines in Chapter 11: Hawaiian Airlines filed for bankruptcy
protection in March 2003. Hawaiian, however, is expected to emerge
from Chapter 11 as soon as this month.
After the Sept. 11 attacks, Aloha received a $40.5 million
federal loan guarantee from the ATSB. The airline used the
guarantee to obtain a $45 million loan in late 2002 and said, to
date, has paid back about half.