Aloha Airlines Bankruptcy
 

Aloha Airlines has filed for bankruptcy. Hawaiian Airlines is in bankruptcy. The airline industry in Hawaii is in trouble. Both companies plan to reorganize and come out of bankruptcy, and when they do watch for higher fares.

Why single out Hawaii, rusty? The airline industry in the whole USA is in trouble, and nearly all the airlines are in, have been in, or are about to go into bancrupty.

At some point all of them are going to have to start charging higher fares.

I will have to say that Hawaiian's fares to the mainland are a lot cheaper and their service better than many of the national airlines.

Icuy, I single out Hawaii because Aloha, a Hawaiian Airline, filed for bankruptcy TODAY and because this is the Hawaiian section of this forum.

This is the WHAT section of WHAT???

Meesthare: this is the Hawaiian section of the Canadian forum - LOL!

Aloha and Hawaiian are only 2 of many airlines flying from the mainland to the Hawaiian islands, but they make up the great majority of all inter-island flights. So any bankruptcy-related disruptions will cause many more problems for those who want to visit the neighbor islands. But have you heard about the Superferry? Starting in 2006 we will be able to take a high-speed ferry between the major islands for a fraction of the cost of an airline ticket. It also means that we will be able to take our cars with us (or tourists can rent a single car and use it on multiple islands). Previous ferry attempts have not worked out, but these boats are faster and more stable, while management looks solid. Check it out at www.hawaiisuperferry.com

There will be no interisland superferry for a fraction of the cost of an airline ticket. And I predict there will be no interisland ferry at all !

As of Jan 3, the Aloha website posts a link at the bottom of the splash page. From there you'll find an Adobe file with press releases and assurances from the execs that all prices, tickets, etc will be honored while they restructure. Take this info as you may... I'm willing to book my April inter-island flights and keep the digits entwined.

If restructuring is not approved by creditors and the court Aloha will go into liquidation. In that unlikely situation people who have paid for tickets are unsecured creditors who will not only lose their reservation but also their money.

Rusty - you should read up a little about the Super Ferry in Hawaii - log onto the Honolulu Advertiser (.com) and there are articles all the time about it. In fact, in the 12/21/2004 edition, it IS included as a budget item for the next year. It is expected to become a reality and will be a good thing for both tourists and locals.

Bashful, I have read all about the proposed Hawaiian interisland ferry service. Putting a budget on paper is a lot easier than building ferries, putting them in service, and operating them profitably. As you said it is EXPECTED to become a reality. As I said, there will definitely be no interisland ferry service "for a fraction of the cost of an airline ticket". That is a fact. It is not possible. And it is my opinion that IF the proposed ferry service becomes a reality it will not be successful, just as a similar ferry service across Lake Ontario between Toronto and Rochester failed in August 2004 after just a few voyages. That ferry is now on the auction block.

How do you go bankrupt running an airline in an island chain?

I've also wondered that myself fm. Our other airline, Hawaiian is in it's SECOND bankruptcy.

You let your guard down Rustacruzin. :S-

Jacketwatch: I was wondering if anyone else would catch that from the 1/3/05 post... but you're the first to say anything!!

Mahalo, <font color="blue">jacketwatch</font> and <font color="blue">cawhite</font>, appears a provocateur was provoked.

Right on JohnD! :-). He's a few French fries short of a happy meal you know. LOL! :-)

Investors (and politicians and bankruptcy judges) should let either Hawaiian or Aloha fail, then the other one can charge more (i.e. a fare that can actually make money). Then I'm sure the other one will do fine, until another suicidial corporation enter that market.

Article in today's Honolulu Star-Bulletin goes into detail about whether this state can support 2 competing airlines:
http://starbulletin.com/2005/01/09/business/story1.html

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