Aloha Airlines Ceases To Exist

Aloha Airlines is no more. The airline is shutting down.

From the Honolulu Star-Bulletin:

In a news release today, the company said United Airlines and other airlines will help accommodate passengers who have flights scheduled on Aloha. Aloha has stopped selling tickets for future flights.

“This is an incredibly dark day for Hawaii,” David Banmiller, Aloha’s president and chief executive officer, said in the release. “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.”

Banmiller also expressed regret for the 1,900 employees this shutdown will affect.

“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,” Banmiller said.

Aloha filed for bankruptcy two weeks ago, saying it could not handle its financial troubles with the interisland fare war and escalating fuel costs.

Aloha will operate its air cargo and aviation service units while it continues to look for a buyer. It received a bid last week, $13 million from Young Brothers.

Aloha has suffered since Phoenix-based Mesa Air Group Inc. launched a new interisland carrier called go! airlines in 2006, triggering a local airfare war.

Banmiller didn’t mentioned go! by name in his statement, but he blamed the company’s demise on rival companies.

“Unfortunately unfair competition has succeeded in driving us out of business,” Banmiller said in a statement.

Customers who don’t want to fly United Airlines should call their credit card company or travel agent, or, if they paid cash, should contact the bankruptcy court.

Aloha Air shutting down after tomorrow
[Honolulu Star-Bulletin] (Thanks, Matt!)