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Aloha Airlines Shuts Down

Fierce competition and rising fuel costs push carrier over the edge

By Jim O'Neill,  Newser User

Posted Mar 31, 2008 7:11 AM CDT

(Newser) – Unable to find a buyer and running out of cash, Hawaii’s ubiquitous Aloha Airlines is shutting down operations after today, idling 1,900 workers and ending more than six decades of island-hopping and transpacific flights, the Honolulu Advertiser reports. The airline filed for bankruptcy March 20 because of rising fuel prices and fierce competition from startup go! airlines.

Aloha, Hawaii’s second-largest carrier, operated some 700 interisland flights and 120 flights to the mainland weekly. Aloha said it is working with code-share partner United Airlines to honor Aloha tickets, and Hawaiian Airlines said it would increase capacity and take as many Aloha passengers as it can for free through April 3.

Tourists disembark from a flight from Maui, Hawaii on go! Airlines at the Honolulu International Airport.
Tourists disembark from a flight from Maui, Hawaii on go! Airlines at the Honolulu International Airport.   (AP Photo/Marco Garcia, file)
An Aloha Airlines passenger plane departs the Honolulu International Airport, Sunday.
An Aloha Airlines passenger plane departs the Honolulu International Airport, Sunday.   (AP Photo/Marco Garcia)
A passenger checks in at the Aloha Airlines counter at the Honolulu International Airport, Sunday, in Honolulu.  Aloha Airlines said Sunday that it will halt all passenger service after today.
A passenger checks in at the Aloha Airlines counter at the Honolulu International Airport, Sunday, in Honolulu. Aloha Airlines said Sunday that it will halt all passenger service after today.   (AP Photo/Marco Garcia)
With a palm tree in the foreground, an Aloha Airlines passenger plane departs the Honolulu International Airport on Sunday.
With a palm tree in the foreground, an Aloha Airlines passenger plane departs the Honolulu International Airport on Sunday.   (AP Photo/Marco Garcia)
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