May 1, 2008 - After more than 60 years in existence, Aloha Airlines this week converted its recent Chapter 11 bankruptcy restructuring to a Chapter 7 liquidation case. This means that a trustee will dispose of the airline’s assets.
Since Aloha is liquidating, other entities can pick and choose which assets, if any, they want. Unfortunately, purchasers of assets in Chapter 7 liquidation are not required to hire Aloha employees or honor collective bargaining agreements.
“Aloha Airlines is the latest casualty of airline deregulation,” said IAM General Vice president Robert Roach, Jr. “Under deregulated market conditions, the airline industry as a whole cannot be both profitable and competitive. Since this industry is essential to our nation’s commerce, the government must step in and introduce some sane controls before more airlines and airline jobs disappear.”
The IAM will continue fighting to protect as many jobs as possible, and assist those that lose their jobs as a result of Aloha’s demise. The Machinists Union’s Department of Employment Services is assisting members affected by Aloha’s shutdown.
“The Machinists Union will not abandon our Aloha members,” said Roach.
