Aloha Chapter 11

Aloha Airlines has filed for chapter 11 bankruptcy, just 2 years after emerging from a previous bankruptcy. They plan on continuing to fly as long as their bankruptcy is accepted by the courts.

Aloha Airgroup Inc. is blaming the loss of revenue on the low prices of competitor Go! airlines which is managed by the Mesa Air Group Inc.

Go! came into the market in 2006 to compete with both Aloha Airlines and Hawaiian Airlines. Aloha is claiming that Go! is operating the business at below cost, meaning they are losing money on passenger tickets. The money coming in is less than the money going out, no net profit, they are operating at a loss. This seems to be backed by the fact that Go! reported a net loss in its first year of operation.

Aloha CEO and President David A. Banmiller had the following to say, "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." Banmiller is referring to the fact that Go! is operating at a loss in order to draw as many people as possible to the airlines and in turn forcing Aloha and Hawaiian to dramatically lower ticket prices in order to compete. All of this occurs at a time when fuel prices are skyrocketing out of control.

We'll see how everything plays out. For more information on this story, visit Aviation.com


Godspeed