Honolulu, Hawaii 4/1/2008 7:48:54 PM
News / Business

Hawaii's Bankrupt Aloha Airlines Halting Passenger Service

DestinationVillas.com Issues a Travel Alert for Hawaii Travelers

DestinationVillas.com Editor, Tori Milan issues a travel advisory for Hawaii travelers holding Aloha Airline tickets as news spreads that Aloha Air halted passenger service on March 31, 2008.

Aloha Airlines announced Sunday it will halt all passenger service effective March 31, 2008 as a result of the Chapter 11 bankruptcy filing. "We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business," said Aloha President David Banmiller in a statement. "We had no choice but to take this action."

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. Aloha had served Hawaii for more than 61 years.

In January, go! reported a $20 million operating loss in its first 16 months of operations. Meanwhile, Aloha and Hawaiian Airlines -- the other major interisland carrier -- reported combined losses of nearly $65 million since go! began operating.

For passengers holding Aloha Airline tickets DestinationVillas.com recommends making alternative plans as the Aloha Airline tickets will not be honored.
Aloha is advising passengers who don't want to fly another airline and who want a refund to contact their travel agents or credit card companies. Those who paid by cash or check may file a claim in bankruptcy court. Hawaiian Airlines said it would add capacity and take all the Aloha passengers it can on standby free, but only for four days, through April 3.

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