Mar
31
Complex impact from Aloha shutdown
Filed Under Sunrise on KGMB9
The twilight of Aloha Airlines, if it cannot be halted or undone rapidly, will affect the whole state.
For example, there are 500 Aloha employees on Maui, where it is the 11th largest employer. Almost 2,000 employees statewide face layoff even though the cargo operations are continuing.
Gov. Lingle injected an interesting note Sunday evening when she announced she will ask the bankruptcy judge to order Aloha NOT to shut down until it can show it has exhausted all options.
She alluded indirectly to a state law requiring more notice of major layoffs than Aloha has given. But since federal law supercedes state law it would be wise not to assume will automatically save the day.
Sources close to the situation say what was different this time, as opposed to the last bankruptcy, is that the capital markets are tighter as a result of the mortgage default crisis, so potential white knights can’t access cash as easily as before.
In other words, what was different this time was not anything different about Aloha but something different about the rest of the world.
Aloha wasn’t much changed. Sure, its aging fleet is even more senior than before, and soaring jet fuel prices made that an even bigger deal than formerly, but in many respects the airline operates more economically and efficiently than before. And let’s not forget the very real possibility of a substantial monetary judgment if it won its pending lawsuit against go! parent Mesa Air.
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Go home GO! When ever a mainland brand comes to Hawaii for business it is a good for Hawaii, however in the case of Aloha shutting its doors due to a mainland airlines cheap tactics the impact will be felt well beyond the loss of our beloved local airline. We will undoubtedly feel the economic strain for months perhaps years to come. It is sad that GO airlines greed on a monopoly mission has created 1,900 casualties. What can be learned from this tragedy? The ball was dropped in so many places that it must look like a driving range at a golf course on Sunday. I am not sure if we will ever have the right answers but I do know this, we cannot allow something like this to happen again in the future. If it was up to me and it isn’t I would boycott GO airlines so that any attempts in the future by mainland predators would be discouraged.
ALOHA AIRLINES WE WILL MISS YOU