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Aloha Airlines shuts down...effective immediately!


Alyssa

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I just read the article and read through the info on their website, that is so crazy. I feel so bad for people who are losing money on this. I have some friends who are Hawaiian but live in Orange County and Reno they used Aloha all the time to fly between OC, Reno and the Big Island.

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In case anyone wants to know how this is affecting another airline, here is my inside scoop:

 

New Hawaii maintenance plan in place following Aloha shutdown

Alaska moves to protect assets

 

April 1, 2008

 

By Christy True

 

The sudden announcement by Aloha Airlines that it would cease passenger operations after Monday required Alaska Airlines to quickly develop a plan to cover maintenance needs in Honolulu and Lihue.

 

Aloha Air Contract Services has been handling Alaskaâ€s mechanical needs in Hawaii since the carrier started service there last fall. Aloha has said it will continue its contracting while shutting down its passenger operations, but it is unclear for how long, said Kurt Kinder, managing director of line maintenance. Aloha told employees in a message it is seeking bidders for its cargo and contract services division.

 

 

Aloha Airlines had been in business for 61 years before its sudden shutdown Monday.

Saying “time has run out,” Aloha announced on Sunday that it would no longer sell tickets for travel after Monday. Aloha filed for Chapter 11 bankruptcy on March 20 and had not been able to find a qualified buyer. The carrier, which was founded in 1946 and employed 3,500 workers, blamed its financial problems on “forces beyond our control,” citing escalating fuel costs and an inter-island fare war with competitors.

 

In the short term, Alaska will assign one mechanic each to work in Honolulu and Lihue, starting immediately. The mechanic will primarily provide oversight to Aloha contractors, Kinder said. Mechanics will rotate in from each of Alaskaâ€s hubs and typically stay 24 to 72 hours before another mechanic takes their place.

 

Medium term, two mechanics will be assigned to work at each of the Hawaii stations on 30-day assignments until a long-term solution is found, Kinder said. Alaska also has the option of calling on Delta Global Services for mechanical help, if needed.

 

As soon as Alaska was notified of Alohaâ€s operational plans, Maintenance & Engineering moved to protect the companyâ€s assets, Kinder said. All equipment has been moved from Alohaâ€s storage area to space controlled by Alaska Airlines.

 

Since news of Alohaâ€s collapse was announced, many employees have suggested via the Water Cooler that Alaska Airlines should buy the airline, some of its assets or take over some of its routes. Aloha provided inter-island service as well as flights to Mainland cities, including Oakland, Orange County and San Diego.

 

“Aloha has been struggling for a long time in a market that has too much capacity. Another airline in Hawaii would face the same challenges, particularly in the inter-island market,” said Brad Tilden, executive vice president of finance and planning and chief financial officer of Alaska Air Group.

 

Aloha flew 737-200s, -700s and one -800 model, with an average age of 18 years. The expectation is these aircraft will be returned to the lessors and re-leased at prevailing rates.

 

Alohaâ€s demise may create opportunities to expand Alaska Airlines†Hawaii service, an area the company is studying, Tilden said.

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