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Tuesday, March 25, 2008
Aloha Continues
Aloha, which cited Mesa’s go! operations for its second trip into bankruptcy, 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 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!. Emails revealed since then as part of a successful suit by Hawaiian, the regional carrier said that go! would not be viable with three carriers competing in the market. Aloha's current cash of $3.5 million will not sustain it for long with $2.3 million expected to be spent by the beginning of April.

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