Aloha Continues

Aloha, which cited Mesa’s go! operations for its second trip into bankruptcy court, received court permission to continue operating. Legislators, which once bailed out Hawaiian Airlines, are considering similar action for Aloha in order to preserve the carrier’s 3,500 jobs. The carrier is looking...

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Aloha, which cited Mesa’s go! operations for its second trip into bankruptcy court, received court permission to continue operating. Legislators, which once bailed out Hawaiian Airlines, are considering similar action for Aloha in order to preserve the carrier’s 3,500 jobs. The carrier is looking for a buyer, similar to its last bankruptcy filing. Local media reported that an announcement about a United acquisition was imminent before the bankruptcy filing. KITV reported that Aloha's management was going to announce the United bailout on March 14, but the major carrier pulled out citing high fuel costs.
Mesa bid to invest in the carrier during its last bankruptcy and Aloha is suing the carrier saying it used confidential information gained in due diligence to start go!. In emails revealed since then as part of a successful suit by Hawaiian, the regional carriers said that go! would not be viable with three carriers competing in the market.
The legislature is considering a bill waiving fuel taxes for all inter-island carriers which would save carriers between $2 million and $6 million dollars annually. Aloha, according to local press reports, carriers 85 percent of inter-island cargo. Legislators, who provided assistance to Hawaiian via a loan guarantee, are also looking at loan guarantees and other tax initiatives such as credits, abatement and deferrals, despite the fact that the state is, itself, not in great financial shape.