March 28, 2008 - An Aloha Airlines bankruptcy court hearing is scheduled for Monday March 31, 2008. Aloha complained in a previous court appearance that go! airline’s predatory conduct contributed to the need for the bankruptcy and confirmed that Aloha Airlines is for sale. At that hearing, Judge King approved the interim use of cash collateral to continue operating the airline and pay wages and other employee related expenses. The airline is expected to update the court on its progress in finding a buyer or significant investor at the March 31 hearing. Media reports suggest that Aloha Airlines may cease operations if a buyer is not found.
High fuel prices and unrealistically low inter-island fares have caused Aloha’s precarious condition, not its employees. The fact that Aloha has not asked for any concessions from employees is telling for two reasons: Aloha acknowledges the substantial contributions its employees have already made to the airline, and the carrier recognizes that its condition is so dire that any additional employee sacrifice will not improve Aloha’s current situation.
Seattle-based Saltchuk Resources, Inc. has made an offer to buy Aloha’s cargo operations, but not the passenger operation. Approval of the Saltchuk offer is subject to possible higher and better offers from other parties. There have been no offers at this time for the entire business.
