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ALO-2005 9 MTHS
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FORMED AND STARTED OPERATIONS IN 1946. FORMERLY "TRANS-PACIFIC AIRLINES." REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
PO BOX 30028
HONOLULU, HAWAII 96820-0028, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
APRIL 1988: ACCDT: (ALO) 737 ROOF SEPARATION ON LANDING AT MAUI = 1 CABIN ATTENDANT (CA) FATALITY.
JANUARY 1993: 1992 = -$6.7 MILLION (NET LOSS) (+$5.2 MILLION): -5.4% (RPK) TRAFFIC, -5% PASSENGERS (PAX).
2 737-400'S (CFM56-3C1) DELIVERIES.
JANUARY 1994: 1993 = +$0.96 MILLION.
APRIL 1994: 1 737-200 (JT8D-17A), EX-CHINA SOUTHERN (GUN).
OCTOBER 1994: 1 737-200A (JT8D-15), EX-AMERICAN AIRLINES (AAL).
MARCH 1995: 1 737-200A (JT8D-15A), EX-AIR MALTA (MLT).
DECEMBER 1995: 2 +2 ORDERS (AUGUST 2002 & DECEMBER 2002) 737-497 (EFIS). ALREADY HAS 2 737-497'S (PV271; PV272). 737-200A (JT8D-17A), EX-(ALK), DELIVERY.
MARCH 1996: 2,235 EMPLOYEES (INCLUDING 194 FLIGHT CREW (FC) & 44 MAINTENANCE TECHNICIANS (MT)).
STILL OPERATES EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) TO JOHNSON ISLAND. EACH AIRPLANE SCHEDULED FOR 15 FLIGHTS/DAY WITH APPROXIMATELY 15 MINUTES TURNAROUND. ALL LIFE RAFTS REMOVED EXCEPT (ETOPS) FLIGHT AS WEIGHT SAVINGS.
ALOHA AIRLINES (ALO) SOLD ALL 737-300 & 737-400 AIRPLANES & REPLACED WITH 15 737-200 (SINCE OBTAINING STAGE 3 EXEMPTION).
AUGUST 1996: 4 737-230'S (2 IN 1996, 2 IN 1997), EX-LUFTHANSA (DLH), 7 YEAR LEASED.
SEPTEMBER 1996: TERRY SMITH, VP MAINTENANCE & ENGINEERING RESIGNED TO JOIN AIRTRAN AIRWAYS (CQT).
1 737-200 (19942), UNITED AIRLINES (UAL) SERVICES, 2 MONTHS LEASED
OCTOBER 1996: KARL FREIENMUTH, VP MAINTENANCE ENGINEERING, EX-SUN COUNTRY AIRLINES (SCA).
NOVEMBER 1996: http://www.alohaair.com/alha-air).
SOLD 2 737-200'S (22148; 21719) AND LEASED BACK, 1 WET-LEASED TO AMERICA WEST AIRLINES (AMW) (22630). (PK695) RETURNED TO LESSOR. 4 737-230'S, EX-LUFTHANSA (DLH) (1ST UNDERGOING MODIFICATIONS AT TIMCO, TO ENTER SERVICE THIS MONTH WITH OTHER 3 IN EARLY 1997).
JANUARY 1997: 1ST OF 4 737-230'S, EX-LUFTHANSA (DLH), 3 FOR MODIFICATIONS AT TIMCO GREENSBORO, NORTH CAROLINA. STUDYING CONVERSION OF 737-200QC TO FREIGHTER CONFIGURATION.
FEBRUARY 1997: KARL FREIENMUTH, VP MAINTENANCE & ENGINEERING RESIGNED TO JOIN SUN COUNTRY AIRLINES (SCA) AS COO.
APRIL 1997: RALPH AKUTAGAWA, SENIOR DIRECTOR MAINTENANCE; & JONATHAN GOO, SENIOR DIRECTOR ENGINEERING & QUALITY ASSURANCE. BOTH WILL REPORT DIRECT TO MICKY COHEN.
MAY 1997: LAST OF 4 737-230'S, EX-LUFTHANSA (DLH) INTO SERVICE. 1 737-3YOQC (CFM56-3B1) (23499), EX-VANGUARD (VAG).
JULY 1997: 2,274 EMPLOYEES (INCLUDING 184 FLIGHT CREW (FC) & 4 MAINTENANCE TECHNICIANS (MT)).
1996 = +$3.60 MILLION (-$6.90 MILLION).
1 737-3YO (23500), EX-VANGUARD (VAG).
SEPTEMBER 1997: INSTALLS GROUND PROXIMITY SYSTEM (GPS) ON 3 AIRPLANES, AS PART OF ITS PROGRAM TO EXPAND EXTENDED TWIN-ENGINE OPERATIONS (ETOPS).
SELECTS WALTER KIDDE FOR CARGO FIRE DETECTION & SUPPRESSION.
EXPANDS (ETOPS) TO CHRISTMAS ISLAND, CHARTERED BY GOVERNMENT OF KIRIBATI. (ETOPS) NOW TO 2 DESTINATIONS & PLANS FOR +2. ONLY HAS 1 (ETOPS) CAPABLE 737, BUT EXPECTS TO ADD MANY. HAS FLOWN 2 FLIGHTS/WEEK TO JOHNSTON ISLAND FOR A LONG TIME.
HAS SHORTAGE OF (JT8D) ENGINES. SEVERAL AIRPLANES GROUNDED FOR SHORTAGE OF ENGINES: HIGHER THAN USUAL UNSCHEDULED REMOVALS FROM EX-LUFTHANSA (DLH) AIRPLANES, MAINTENANCE DEFERRED FROM LAST YEAR, AND DIFFICULTY GETTING (P&W) PARTS.
1 737-200 (23051) & 1 737-200QC (23045), EX-(TAP) PORTUGAL, IN JANUARY & JULY 1998, 8 YEAR LEASED.
OCTOBER 1997: STATE OF HAWAII SUSPENDS LANDING FEES FOR NEXT 2 YEARS TO BOOST TOURISM. WILL SAVE (ALO) $11 MILLION.
STUDY OF CONVERSION OF 737-200QC TO A COMBI FOR EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) ROUTES. OPERATES HAWAII TO CHRISTMAS ISLAND FOR AIR KIRIBATI.
NOVEMBER 1997: MICKEY COHEN, SENIOR VP OPERATIONS RESIGNED.
JANUARY 1998: JACK BUCKINGHAM, STAFF VP MAINTENANCE & QUALITY ASSURANCE.
FEBRUARY 1998: (PK691; PK694) TO SANTA BARBARA AEROSPACE FOR REDELIVERY PACKAGE, CORROSION PREVENTION & CONTROL PROGRAM (CPCP), AIRWORTHINESS DIRECTIVES (AD)'S, MODIFICATIONS) FOR RETURN TO LESSOR. REPLACED WITH 2 737-200'S (PN085; PY721), EX-(TAP) PORTUGAL, 1ST AT AIR NEW ZEALAND (ANZ) FOR CONFORMITY MAINTENANCE. 2ND IN JULY 1998.
APRIL 1998: 2,274 EMPLOYEES (INCLUDING 184 FLIGHT CREW (FC) & 4 MAINTENANCE TECHNICIANS (MT)).
CHARTER FLIGHTS TO MIDWAY ATOLL (737-200).
1ST QUARTER MAINTENANCE EXPENSES = $10.60 MILLION (18.86% TOTAL OPERATING EXPENSES); 399 MILLION (RPK) TRAFFIC (+5.7%), 67.1% LF LOAD FACTOR (+1.5), 3.5 MILLION (FTK) FREIGHT TRAFFIC (-4.3%), 1.77 MILLION PASSENGERS (PAX) (+5.7%).
MAY 1998: STEVE FURNAS, DIRECTOR PLANNING REPLACES LLOYD HO. TIM CISLO, DIRECTOR INTERNAL AUDIT. MIKE ARITA, MANAGER QUALITY ASSURANCE AND RELIABILITY. GREG ENOMOTO, MANAGER SHOPS.
JUNE 1998: 1 737-209 (JT8D-9A) (23913), EX-TRANSMILE (TML), SANWA LEASED.
AUGUST 1998: BYRON PETROSSIAN, MANAGER PLANNING.
SEPTEMBER 1998: BEAU TATSUMURA, DIRECTOR MAINTENANCE. EARL SEPULVEDA, MANAGER QUALITY CONTROL.
737-200 (PN473), EX-TRANSMILE (TML) & CHINA AIRLINES (CHI), SANWA LEASED, HEAVY CHECK AT AIR NEW ZEALAND (ANZ).
OCTOBER 1998: JACK BUCKINGHAM, VP MAINTENANCE & ENGINEERING.
FISCAL YEAR (FY) 1997 = +$4.27 MILLION (+$4.3 MILLION). 3RD QUARTER MAINTENANCE COSTS = $10.27 MILLION (18.49% OF OPERATING EXPENSES).
737-200C (JT8D-17A), EX-AIR PORTUGAL (TAP). 737-282C (N824AL) PAINTED IN SPECIAL "LEI" LIVERY TO CELEBRATE HAWAIIAN ISLAND ALOHA FESTIVAL HALI'A.
DECEMBER 1998: PLANS TO ELIMINATE -120 JOBS - OFFERING EARLY RETIREMENT INCENTIVE.
SCOTT FUNG, DIRECTOR ENGINEERING RESIGNS AND JOINS HAWAIIAN (HWI).
JANUARY 1999: 737-2Q9 (21720) RETURNED TO LESSOR.
FEBRUARY 1999: HENRY KAAHANUI, DIRECTOR CARGO SERVICES.
MARCH 1999: PLANS FOR NEW ROUTES TO REPUBLIC OF MARSHALL ISLANDS AND FEDERATED STATES OF MICRONESIA, INCLUDING MAJURO, KWAJALEIN, & PONAPE.
PLANS TO CONFIGURE +2 737-200'S FOR (ETOPS) FOR TOTAL 5. 3 CURRENTLY USED FOR CHRISTMAS ISLAND, JOHNSTON ISLAND AND MIDWAY ISLAND.
APRIL 1999: MS KANDRA KIYAN-COLLU, MANAGER ENGINEERING.
MAY 1999: 2,265 EMPLOYEES.
JUNE 1999: 737-200 (22426) PURCHASED OFF LEASE FROM GECAS (GEF).
JULY 1999: MAINTENANCE CONTRACT FOR "C" CHECK ON 737-200C (23122) AT SPAR AVIATION SERVICES, EDMONTON.
2ND QUARTER MAINTENANCE COSTS 9.98 MILLION (17.8% OF DIRECT OPERATING COSTS (DOC).
AUGUST 1999: NEXT MONTH, TO START SERVICE TO REPUBLIC OF THE MARSHALL ISLANDS, WITH STOPS AT MAJURO AND KWAJALEIN, INCLUDING FUEL STOP AT JOHNSON ISLAND (737-200, 10C, 97Y, (ETOPS).
CHICK AUBREY, DIRECTOR PRODUCTION. RALPH AKUTAGAWA, SENIOR DIRECTOR MAINTENANCE SUPPORT & (ETOPS) PROGRAMS.
PLANS IN FEBRUARY 1999, FOR (ETOPS) FLIGHTS WITH 737-700'S FROM MAUI AND HONOLULU TO OAKLAND, ALOHA (ALO)'S 1ST FORAY TO THE MAINLAND IN ITS 53-YEAR HISTORY = 2,100 MILES), 12F, 112Y PAX. POSSIBLE LATER SERVICE TO LAS VEGAS AND SAN DIEGO.
6TH 737-200 (22426) MAINTENANCE "C" CHECK AT SPAR AVIATION SERVICES, EDMONTON. 2 ORDERS (NOVEMBER 1999) 737-700'S.
SEPTEMBER 1999: 2,265 EMPLOYEES.
OCTOBER 1999: 737-73A (390-28499, N738AL), ANSETT (AWW) LEASED.
NOVEMBER 1999: 2,406 EMPLOYEES.
IN FEBRUARY 2000, TO OAKLAND. ALSO, KAHULUI - OAKLAND (737-700).
737-73A (28500, N739AL), (AWAS) (AWW) LEASED.
JANUARY 2000: 9 737-200'S MAINTENANCE CONTRACT TO CONAIR AEROSPACE ABBOTSFORD, BRITISH COLUMBIA, CANADA, FOR SUPPLEMENTAL STRUCTURAL INSPECTION DOCUMENT (SSID), LAP JOINT MODIFICATIONS/REPAIRS.
FEBRUARY 2000: COMPLETES VALIDATION FLIGHTS FOR 737-700 180 MINUTES (ETOPS) TO BECOME 1ST 737NG 180 MINUTES (ETOPS) OPERATOR IN WORLD.
LAUNCHES HONOLULU - OAKLAND, & KAHULUI, MAUI - OAKLAND (737-700) TO MIDWAY ISLAND.
APRIL 2000: 2,274 EMPLOYEES (INCLUDING 184 FLIGHT CREW (FC), & 4 MAINTENANCE TECHNICIANS (MT)).
MAY 2000: JONATHON GOO STAFF VP ENGINEERING & QUALITY ASSURANCE.
AUGUST 2000: 2,477 EMPLOYEES.
1999 = -$1.81 MILLION (+$5.26 MILLION): 1.15 BILLION (RPK) TRAFFIC (-1%); 65% LF; 11.68 MILLION (FTK) FREIGHT TRAFFIC (+2.3%); 5.1 MILLION PASSENGERS (PAX) (-1.3%); 2,576 EMPLOYEES (+11.2%).
3 ORDERS (MARCH 2001) 737-700'S, (GEF) 15 YEAR LEASED.
SEPTEMBER 2000: STARTS DAYTIME 737F SERVICE BETWEEN HONOLULU, MAUI, & ISLAND OF HAWAII TO REPLACE CEASED OPERATIONS BY KITTY HAWK INTERNATIONAL (CKF).
OCTOBER 2000: IN FEBRUARY 2001, HONOLULU/KAHULUI - OAKLAND - LAS VEGAS.
HEAVY MAINTENANCE CONTRACT FOR 19 737-200'S TO CONAIR AEROSPACE, CANADA.
IN APRIL 2001, KONA - OAKLAND, & HONOLULU - MARSHALL ISLAND (737-700, 12F, 112Y, NONSTOPS). IN MAY 2001, TO ORANGE COUNTY'S JOHN WAYNE AIRPORT, CALIFORNIA, CONTINUING ON TO LAS VEGAS MCCARRAN INTERNATIONAL.
MARCH 2001: 2 737-76N'S, (GECAS) (GEF) LEASED. TO BE USED FOR FLIGHTS TO MARSHALL ISLANDS (MAJURO AND KWAJALEIN) - 1ST DIRECT SERVICE.
MAY 2001: 2,477 EMPLOYEES.
JUNE 2001: 1 737-76N (30830, N742AL), (GEF) 15 YEAR LEASED.
AUGUST 2001: 2,862 EMPLOYEES.
OCTOBER 2001: JOHN BRUM VP MAINTENANCE & ENGINEERING, REPLACES JACK BUCKINGHAM, NOW VP SAFETY & REGULATORY COMPLIANCE.
WILL CUT -8% OF ITS WORKFORCE.
NOVEMBER 2001: 1 737-76N (32582, N744AL) DELIVERY.
DECEMBER 2001: POSSIBLE MERGE OF ALOHA AIRLINES (ALO) WITH HAWAIIAN AIRLINES (HWI), TO FORM A NEW COMPANY, HEADED BY GREG BRENNEMAN, EX-CONTINENTAL AIRLINES (CAL). PARENT HOLDING COMPANY, TO BE CALLED ALOHA HOLDINGS.
JANUARY 2002: NEW MERGED ALOHA AIRLINES (ALO)/HAWAIIAN AIRLINES (HWI) AIRLINE WILL REPLACE (ALO)'S 18 737-200'S, WITH 717'S. ALSO, PLANS TO ORDER 12 757'S OR 767'S, FOR FLIGHTS TO THE MAINLAND.
FEBRUARY 2002: 1 737-76N (28654), (GECAS) (GEF) 15 YEAR LEASED.
MARCH 2002: MERGER WITH HAWAIIAN AIRLINES (HWI) HAS BEEN CANCELED.
737-76N (32582, N744AL) DELIVERY AFTER MODIFICATION AT CASCADE AVIATION, ABBOTSFORD BRITISH COLUMBIA, CANADA, (GEF) LEASED.
APRIL 2002: IN JUNE 2002, TO BURBANK, CALIFORNIA & VANCOUVER, CANADA (737-700, DAILY NONSTOPS).
MAY 2002: WILL DOUBLE ITS NORTH AMERICAN SERVICE FROM MAUI, WITH DAILY FLIGHTS TO PHOENIX, VIA ORANGE COUNTY, CALIFORNIA, STARTING JULY 2002. IN JUNE 2002, DAILY NON-STOPS, HONOLULU - BURBANK AND - VANCOUVER. IN NOVEMBER 2002, NON-STOPS TO VANCOUVER, AND FEBRUARY 2003 TO BURBANK.
3 737-700'S DELIVERIES.
June 2002: 737-200 (N802AL) returned to lessor. 2 737-76N's (29905, N746AL; 30050, N748AL), (GEF) leased.
July 2002: 2001 = -$11.08 Million (-$4.29 Million): 2.06 Billion (RPK) traffic (+34.1%); 69.2% LF load factor; 4.61 Million passengers (PAX); 13.7 Million (FTK) freight traffic (+5.1%); 2,899 employees (+3.1%).
Plans to lease 3 737-700's (29904; 29905; 30050), ex-(LAPA) (LAZ) by 2nd half of 2002. 2 orders (November 2003) 737-700's, (GEF) leased.
September 2002: In December 2002, to Raratonga, Cook Islands (737-700, 2/week, 2,900 miles, 6 hours).
737-76N (29904, N745AL), ex-(LAPA) (LAZ), (GECAS) (GEF) leased. 2 737's (N802AL; 4AL) returned to lessor.
October 2002: Aloha Airlines (ALO) & Hawaiian Airlines (HWI) have received a 1-year, antitrust immunity, which allows each to jointly set the capacity level to be offered on inter-island flights. A drop in tourism and increased flights from the neighbor islands to the mainland, have reduced demand for inter-island travel. Each carrier must provide half of the available seat miles (ASM)'s in total, and one carrier must compensate the other, if it captures more than half of the revenue passenger miles (RPM)'s.
Starts Honolulu - Burbank - Las Vegas.
2 737-76N's (29905, N746AL "KAHA'L;" 30050, N748AL), ex-LAPA (LAZ), (GEF) leased. 1 737-200C (N802AL), & 1 737-2Q9 (21719, N804AL), withdrawn from use (WFU) at Mojave.
November 2002: Aloha Airlines (ALO) provides 75% of interisland freight service, using 5 737-200QC's.
Maui to Vancouver, BC (daily, nonstop).
1 737-76N (30050, N748AL) GECAS (GEF) leased, delivery.
December 2002: To Raratonga, Cook Islands (737-700, (ETOPS), 2/week), advertised as "Just like Tahiti, without the French accent."
Daily inter-Hawaiian island flights, decreased by -20%, from approximately 120/day to 95/day (cooperation effort with Hawaiian Airlines (HWI) to match capacity and demand).
January 2003: In February 2003, Kahului - Burbank.
1 order (May 2004) 737-700, (GEF) leased.
March 2003: Purchases Boeing Enterprise One software, which helps to optimize major support functions such as maintenance planning and scheduling, engineering operations, logistics management, document management and configuration control. Installation will begin later this month.
April 2003: Vancouver - Kona (Sundays). Sacramento - Burbank - (Kahului).
May 2003: In July 2003, Reno - Honolulu (737-700, daily nonstop).
June 2003: Annette Murphy, Senior VP Passenger Sales & Service, Stephanie Ackerman Senior VP Marketing & External Affairs, and Randy Laser VP Pricing & Revenue Management.
July 2003: 2,270 employees.
Orange County, California - Kona, Hawqaii (737-700, daily). (Honolulu) - Orange County - Reno, Keno - Orange County.
12 shipset orders of 737-700 blended winglets from Aviation Partners Boeing (APB). Expected to save >106,000 gallons of fuel/airplane/year (based on 3,600-hour flight schedule) and reduce noise footprint -6.5%.
August 2003: 1 order (June 2004) 737-700, (ILF) 12 year leased.
September 2003: 2002 = -$43 Million (-11.1 Million): 2.61 Billion (RPK) traffic (+26.7%); 72.1% LF load factor; 4.4 Million passengers (PAX) (-4.8%); 10.38 Million (FTK) freight traffic (-14.8%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billions):
144 (DAT) 2.97; 145 (APC) 2.87; 146 (EBA) 2.84; 147 (LDI) 2.82; 148 (SIC) 2.82; 149 (MLT) 2.75; 150 (WLD) 2.69; 151 (ALO) 2.61; 152 (MESABA) 2.59; 153 (AIR WISCONSIN) 2.57; 154 (ADH) 2.54.
October 2003: 737-76N (32738, N749AL), (GEF) leased.
December 2003: Sells its IslandAir subsidiary to Gavarnie Holdings who plan to expand the airline's interisland route system. Gavarnie is headed by Charles Willis, who owns San Francisco-based Willis Lease Finance. The airline will continue to code share with Aloha (ALO) and is also expected to code share with Hawaiian Airlines (HWI).
Replaces 737-200 (ETOPS) airplanes with 737-700's to fly Honolulu - Kwajalein - Majuro (Marshall Islands) (2/week), bypassing stop at Johnston Atoll. Has served the Marshall Islands since 1999.
April 2004: Selected Sabre's revenue and fares management solutions provided through the (ASP) delivery option. In addition, (ALO) implemented revenue management for passenger and group sales with a PC-based planning and scheduling system.
2,899 employees (including 238 Flight Crew (FC), 330 Cabin Attendants (CA), & 350 Maintenance Technicians (MT)).
May 2004: Selects STG Aerospaces' unpowered emergency lighting system SafTGlo for its fleet of 11 737-700's.
Lee Steele Senior VP Operations, ex-Polar Air Cargo (POA). Jack Buckingham Senior VP Safety & Quality Assurance. Timothy Ng VP Fleet Planning, ex-Aviation Capital Group (CGP).
In June 2004, Lihue - Oakland.
737-76N (32743, N750AL), (GEF) leased.
June 2004: Expanded its relationship with "Expedia" enabling customers to book complete vacations by building customized packages on the airline's website using Expedia's (WWTE) technology.
Agreements with Alaska Airlines (ASA), Continental Airlines (CAL), Delta Airlines (DAL), Hawaiian Airlines (HWI), & United Airlines (UAL) to offer interline electronic ticketing, which allows passengers to use one e-ticket when traveling on itineraries that include Aloha Airlines (ALO) and one of the cooperating airlines. It eliminates the need for the passengers to obtain a paper ticket to transfer from 1 airline to another, an important convenience in the event of irregular operations.
In September 2004, Las Vegas - Honolulu; Sacramento - Kahului.
Reconfiguration of inter-island fleet from 12F, 106Y to 127Y.
737-7Q8 (30674, N751AL), (ILF) leased.
July 2004: 2003 = +$1.18 Million (-$43.74 Million): 3.18 Billion (RPK) traffic (+21.7%); 72.9% LF load factor; 4.13 Million passengers (PAX) (-5.8%); 13.18 Million (FTK) freight traffic (+21.1%).
737-277 (22650, N184AW), Jetran leased.
August 2004: Equips its 1st 3 737-200's & 9 737-700's with (AFIRS) satellite data collection & transmission systems from AeroMechanical Services Ltd. The (AFIRS) systems which use Iridium network of low-earth-orbit communication satellites, are being used to transmit vital data from the airplane through (AMS) Uptime services. Uptime provides near-real-time data to Aloha (ALO) and helps (ALO) to generate more current info on fleet operations.
October 2004: In December 2004, San Diego to Maui, & San Diego to Reno/Tahoe International Airport (737-700, 2 class, both daily non-stops).
November 2004: David Banmiller President & (CEO), ex-Air Jamaica (JAM) Executive VP & (COO).
December 2004: San Diego - Kahului. Kahului - San Diego - Reno, Kahului - Burbank - Reno.
Files voluntary petitions for reorganization under Chapter 11 of the USA Bankruptcy Code.
March 2005: Financial restructuring helped by OK for $65 Million debtor-in-possession (DIP) funds.
April 2005: Selects Boeing's Enterprise One maintenance software system and Mxi Technologies installed the system into its maintenance operations and turned off its legacy system. The new system will be used for configuration management and maintenance tracking of its fleet of 737-200's/-700's.
June 2005: Jeffrey Kessler, interim Senior VP Finance (CFO) & Treasurer.
737-2S2C (21927, N806AL), parted out to ST Meridian Aerospace.
October 2005: A bankruptcy court judge approved a deal to bail Aloha Airlines (ALO) out of bankruptcy. However, there was a surprise in the proceedings when a new investor emerged.
(ALO)'s new partners, which includes the Yucaipa group (YUC) and Aloha Aviation investor and football star Willie Gault headed into bankruptcy court.
Just a half hour before the proceedings, a new investor group, Perseus, led by former Hawaiian Airlines (HWI) (CEO) Bruce Nobles, filed objections to the new reorganization plan.
The last time Nobles surfaced was about a year ago when he and another group of airlines tried to get Hawaiian Airlines (HWI) out of bankruptcy.
The Perseus Group essentially filed a counter-offer in court claiming they had a deal that would exceed $120 million, which they felt was better for Aloha (ALO).
Lawyers said that the airline was in extreme financial troubles, with only about $2 million cash on hand.
Perseus suggested to the court that switching to an auction process would produce the highest bidder. Under the Perseus deal, Nobles would replace Aloha (ALO) Chief Executive Officer David Banmiller.
Nobles is no stranger to Banmiller. The 2 have a relationship dating back 20 years. Both worked at American Airlines (AAL) and Jamaican airlines (JAM).
Banmiller said the Yucaipa (YUC) investment is the better deal for everyone involved.
"This proposal clearly demonstrates a positive approach to employee relations," Banmiller said.
"So, it's not just that you'd be able to keep your job? "(KITV) reporter Catherine Cruz asked.
"That's not the issue. The issue is doing the right thing for all the constituents and the employees," Banmiller said.
The judge gave the nod to Aloha's (ALO) partner who agreed to >$100-million investment. Attorneys argued that other bidders had 9 months to come up with money to bail the airline out, but only one actually did.
"We are pleased to be involved with the process and look forward to a great future," Gault said.
Aloha (ALO) hopes to be out of bankruptcy by the end of the year.
737-76N (29905), returned to (GEF), leased to GOL (GOT).
November 2005: Aloha Airlines (ALO) reached concessionary agreements with the International Association of Machinists (IAM), which represents mechanics, baggage handlers and other ground personnel at the bankrupt carrier. The new contracts will run until April 2009 and must meet bankruptcy court approval, "Reuters" reported.
737-25A (23791, N819AL "KEKAULIKE"), returned to Boeing (TBC), leased to Premier Airlines, Nigeria.
December 2005: Aloha Airlines (AOL)'s reorganization plan was confirmed by the USA Bankruptcy Court, clearing the way for the Honolulu-based carrier to exit Chapter 11 protection as early as December 15. (ALO) sought bankruptcy on December 30, 2004. The confirmation is subject to the airline and its 270 pilots (FC), represented by the Air Line Pilots Association, finalizing a tentative agreement on a new five-year contract. On a busy day, (ALO) also announced that its flight attendants (CA) had ratified their agreement. The airline said it reduced its cost base by -$75 million through the bankruptcy process. Under the reorganization plan, the Yucaipa Companies (YUC), Aloha Aviation Investment Group and the Ching and Ing families will invest $50 million in equity and up to $50 million in debt financing. Aloha (ALO)'s arch competitor, Hawaiian Airlines (HWI), completed its own Chapter 11 reorganization earlier this year.
Aloha Airlines (ALO) cleared the final hurdle on its way out of bankruptcy as its 270 pilots (FC), represented by the Air Line Pilots Association, ratified the labor agreement reached late last month. Aloha (ALO) has now officially exited Chapter 11. "I am proud and gratified that our pilots have now joined employees throughout the company in backing our Plan of Reorganization in time to meet a critical deadline," President & (CEO) David Banmiller said. Each of the 5 deals Aloha (ALO) struck with its labor force will take effect immediately and run through April 30, 2009.
(ALO) later received permission to cancel its employee pension plans from a USA District Court judge, who ruled against the USA Pension Benefit Guaranty Corporation (PBGC) in finding that the airline would be unable to survive its exit from bankruptcy or attract investors while still owing $155 million to its defined-benefit pension plans. (ALO)'s departure from Chapter 11 nearly was finalized when it reached a labor deal with its pilots earlier, and it was scheduled to emerge Thursday, but the 11th-hour filing by (PBGC) delayed investor commitments and may continue to do so if there is an appeal. The carrier said its financing arrangements still are in place and that it hopes to emerge as soon as possible.
February 2006: USA Bankruptcy Judge Robert Faris approved modifications to a Plan of Reorganization that clears the way for Aloha Airlines (ALO) to exit bankruptcy protection by mid-February.
"We've cleared all the hurdles and we are hopeful we will have our new funding in mid-February," said David Banmiller (ALO)'s (CEO). "We're excited that our lead investor The Yucaipa Company (YUC) will be coming aboard very soon and that we also will have participation by local investors to carry the (ALO) tradition forward."
Banmiller said that under the modified plan of reorganization, (ALO) will emerge with $63 million in equity and very little debt.
(ALO), which emerged from a 13-month bankruptcy February 17, reportedly is under investigation by USA authorities for allegedly using employee pension funds to pay bank loans. The USA Labor Department has subpoenaed 4 banks for data on the defined benefit pension plan of (ALO)'s machinists union, the "Associated Press" reported. The airline's emergence from bankruptcy was delayed by negotiations with its unions and the Pension Benefit Guaranty Corporation regarding pension termination.
March 2006: Aloha Airlines (ALO) will inaugurate nonstop service from Orange County to Sacramento on May 2nd. The airline will operate 6 flights a week on the route, Orange County to Sacramento, daily except Sunday, and Sacramento to Orange County, daily except Saturday, using a 737-700. The airplane originates and terminates this flight in Kahului (Maui).
(ALO) will replace 6 of its interisland jets over the next few months, reports the Pacific Business News in Honolulu.
4 737-200 passenger planes and 2 737-200F freighters will replace airplanes whose leases are expiring. (ALO) said the 1st of the passenger jets will be on line in April, with all 6 expected to be in service this summer.
(ALO) also operates 8 737-700s on trans-Pacific routes.
737-2P6 (21613, N1PC), bought from Interlease, delivery. 737-210C (20917, N834AL), ex-Estafeta Carga (EST), bought from Global Aircraft.
April 2006: Aloha Airlines (ALO), which starts a daily service from Sacramento to Orange County on May 1st, will double the service on June 1st with 2 flights on weekdays and 1 on weekends. The morning departure will operate daily, except Sundays, and the evening departure will operate daily, except Saturdays, both with a 737-700.
737-236 (23168, N150FV), Pegasus (PSS) leased. 737-2M6C (21809, N805AL), sold to MidAmerican Aerospace.
May 2006: 2 737-236's (23169, N151FV; 23171, N152FV), Pegasus (PSS) leased.
June 2006: 737-2K5 (22597, N250TR), (PACE) (PIE) wet-leased.
July 2006: Aloha Airlines (ALO) provides extensive scheduled jet airplane services within the Hawaiian Islands, and passenger services between Hawaii and the USA & Canadian west coasts. Also has buoyant cargo and contract services business.
(IATA) Code: AQ - 327. (ICAO) Code: AAH (Callsign - ALOHA).
Parent organization/shareholders: Aloha Group (100%).
Alliances: United Airlines (UAL).
Main Base: Honolulu International Airport (HNL).
Hubs: John Wayne Orange County Airport (SNA); & Kahului airport (OGG).
Domestic, Scheduled Destinations: Hilo; Honolulu; Hoolehua; Kahului; Kapalua; Kauai Island; Kona Lanai; Las Vegas; Oakland; Reno; Sacramento; San Diego; & Santa Ana.
International, Scheduled Destinations: Vancouver.
737-228 (23001, N252TR), PACE (PIE) wet-leased.
August 2006: 737-230 (23154, N823AL), delivery (now in "Funjet Vacations" colors). 737-236 (23169, N151FV), Pegasus (PSS) leased. 737-290C (22577, N730AS), bought from Alaska Airlines (ASA).
September 2006: Aloha Airlines (ALO) parent Aloha Airgroup named Gordon Bethune Chairman. He retired as Continental Airlines (CAL) Chairman & (CEO) in December 2004.
To commemorate the airline's 60th anniversary, paints 737-230 (N823AL) in the "funbird" colors of the 1970's - see photo.
October 2006: 737-2K5 (22597, N250TR) returned to (PACE) (PIE). 737-236 (23225, N836AL), Pegasus (PSS) leased re-registered from (N152FV).
November 2006: 737-2X6C (23124, N747AS), ex-Alaska Airlines (ASA), (BCI) Leasing leased.
December 2006: Aloha Airlines (ALO) suffered a -$9.9 million loss in the 3rd quarter ended September 30th, >4x greater than its -$2.2 million deficit in the year-ago quarter, according to a Bureau of Transportation Statistics filing cited by press reports. The privately held carrier's 9-month loss was -$33 million. "During the 3rd quarter, Aloha (ALO) faced a new inter-island competitor [go!] who priced its product below its operating cost. Even though we have a lower operating cost per seat than the competition, our earnings were negatively impacted as we remained price competitive. In addition, our fuel costs were higher in the third quarter," President & (CEO) David Banmiller said in a statement. According to Honolulu's "Star Bulletin," Aloha (ALO)'s 3rd-quarter revenue fell -13% to $99.8 million against a +3% rise in expenses to $110.4 million. Operating loss was -$10.6 million compared to -$7.4 million in the year-ago quarter.
February 2007: The USA Senate Commerce and Transportation Committee approved legislation to require the screening of all cargo in the bellies of passenger airplanes within three years. The Transportation Security Administration last May approved a rule that did not include such a strict requirement. "The steps proposed in this bill will both improve our existing security system and give the Transportation Security Administration the flexibility to combat new and emerging threats," committee Chairman Daniel Inouye (Democrat-Hawaii) said in a statement. It was not clear what types of screening will be acceptable. Passenger airlines have strongly opposed 100% screening of belly cargo on grounds that it is impractical and will slow airfreight flow greatly. While yesterday's legislative action was a 1st step toward possible passage, the proposed bill still is a long way from becoming law, which requires passage by the full Senate and House as well as President Bush's signature.
March 2007: The USA District Court in Hawaii denied a request by Mesa Air Group to dismiss a complaint filed by its inter-island competitor, Aloha Airlines (ALO), which accused Mesa of predatory pricing and fraud. Aloha (ALO) and rival Hawaiian Airlines (HWI) each allege that Mesa illegally used proprietary information acquired when considering acquiring or investing in the bankrupt island carriers for last summer's launch of its low-cost "go!" subsidiary. "Aloha (ALO) is not challenging the prices, per se, but rather it is challenging the means by which Mesa was able to determine those prices, ie, through breaching its contract and implied covenant of good faith and fair dealing with Aloha (ALO)," Judge David Ezra wrote.
April 2007: Aloha Airlines (ALO) predicts it will hire 12 pilots (FC) in 2007.
Aloha Airlines (ALO) is disputing Mesa Air Group Chairman & (CEO), Jonathan Ornstein's claim that the +10% to +11% increase in "go!" traffic, has come at (ALO)'s expense. "We didn't lose -10 points," Senior VP Sales & Marketing Thom Nulty said. "He was certainly misinformed." Ornstein made the statement at an analyst conference in Mexico. (ALO) and Hawaiian Airlines (HWI) each are engaged in ongoing legal battles with Mesa. According to statistics from the USA Department of Transportation, (ALO)'s inter- island market share has dipped -2.5 points to 38.7%, Island Air's has fallen -1.6 points to 1.7%, and (HWI)'s has declined -5 points to 50.5% since "go!" launched last June. Mesa's subsidiary, which operates 4 CRJ-200s, currently holds a 9.1% share of the inter-island market.
"There is still a brutal fare war going on. Fares are as low as $19 today. It's cheaper to fly than to park your car," Nulty said. "They [go!] are pricing their product way below the cost. Nobody has a choice but to be competitive. If you aren't competitive, you will be flying around with no passengers." Nulty said he is not sure "what the bottom line is," adding, "at the end of the day, something has got to give because these are not sustainable airfares for anyone."
May 2007: Aloha Airlines (ALO) has found a powerful partner in its effort to survive the inter-island fare war launched last year by Mesa Air Group's "go!," agreeing to transfer a minority equity stake to United Airlines (UAL) as part of an expanded partnership. The size of the stake was not announced, but the companies did say that it "could expand over time." (UAL), which did not pay cash for the stake, also will take a seat on the nine-member Aloha (ALO) board, the Chairman of which is former Continental Airlines (CAL), Chairman & (CEO), Gordon Bethune.
According to the airlines and a number of analysts and press reports, the deal includes a broader code share arrangement under which Aloha (ALO) will place its code on all (UAL) flights between the USA mainland and Hawaii, as well as its daily Honolulu - Tokyo Narita service. Coordinating marketing, leveraged purchasing power, facility sharing and potential fleet enhancement are among other perks of the deal, which should be a boon to an airline whose inter-island market share has fallen -2.5 points to 38.7% since "go!" launched last summer. Through the 1st 9 months of 2006, privately held Aloha (ALO) had lost -$33 million. "The beauty of this for Aloha (ALO) is that we will benefit from the financial and worldwide marketing strength of one of the world's largest airlines," President & (CEO) David Banmiller said. For (UAL), supporting Aloha (ALO) during a difficult period, will enable it to maintain feed for its transpacific flights.
Michael Whitaker, (UAL) Senior VP Alliances, International & Regulatory Affairs, speaking in Copenhagen at the Star Alliance (SAL) anniversary event, said that (UAL) has not yet acquired a stake in Aloha Airlines (ALO) as a result of the expanded partnership announced this month. "We don't have it now, but that would be part of the deal. What we have now is an intention to negotiate and that's underway," he said. He confirmed that (UAL) will not pay for the stake, which Aloha (ALO) will transfer "in exchange for bringing them into the frequent-flier program, co-branding on the credit card, enhanced code sharing and cooperation, which will bring revenue benefits to (ALO) and lower their costs."
June 2007: Aloha Airlines (ALO) reported a 1st-quarter net loss of -$24.2 million, widened from a deficit of -$20.3 million in the year-ago quarter. Revenue was down -10% to $88 million. The privately held airline has been locked in a taxing fare war with Mesa Air Group subsidiary "go!," which entered the inter-island market last year.
(ALO) is eliminating cash for cabin service and will require passengers to use credit cards to purchase alcoholic drinks or in-flight movies.
August 2007: Sabre Airline Solutions will provide 4 solutions to Aloha Airlines (ALO): Sabre Flight Control Suite, Sabre Streamline StaffPlan system, Quasar passenger revenue accounting system and Sabre Qik Business Processing Solutions.
737-2K5 (22597, N250TR), PACE (PIE) leased (again).
September 2007: Aloha Airlines (ALO), which has been battling for market share in the competitive Hawaiian Islands, posted a net loss of -$18.7 million for the 2nd quarter ended June 30, widened from a -$2.8 million loss in the year-ago period, according to data it filed with the USA Department of Transportation. Operating revenue declined -6.1% to $96.3 million. The privately held carrier and Hawaiian Airlines (HWI) have been engaged in fierce competition with low-fare start-up "go!," the Mesa Air Group subsidiary that began inter-island service in June 2006. "It was a tough year for us," Aloha (ALO) President & (CEO) David Banmiller told the Honolulu Star Bulletin. "Fuel was up and fares were down." (ALO) has continued to post losses since it emerged from bankruptcy in February 2006. Operating expenses for the quarter were up +5.9% to $112.2 million and the carrier sustained a -$15.9 million operating loss. For the 12 months ended June 30, (ALO) posted $378.8 million in revenue, a -8.7% year-over-year decrease, and recorded a -$61.7 million net loss, widened from -$26.3 million in the equivalent 2005 to 2006 period.
737-2X6C (23123, N841AL), re-registered, and 737-290C (23136, N742AS), (KP) Aviation leased.
October 2007: Aloha Airlines (ALO) will launch daily flights from San Diego to Kauai and Kona on January 7. Flights to Kauai will operate nonstop 4x-weekly and via Kona 3x-weekly. Flights to Kona will be nonstop 3x-weekly and stop in Kauai 4x-weekly.
November 2007: 737-8K2 (34169), Transavia.com (TAV) leased.
December 2007: Aloha Airlines (ALO) confirmed a -$15.1 million loss in the 3rd quarter, widened from a -$9.9 million deficit in the year-ago period. The carrier now has suffered a loss in each of the past 16 quarters, the "Honolulu Star-Bulletin" calculated. 3rd-quarter revenue rose +4.6% to $104.4 million, but higher fuel prices and lower fares continued to plague (ALO), according to President & (CEO) David Banmiller. Expenses climbed +5.1% to $116.1 million and operating loss deepened to -$11.7 million from $10.6 million in the 3rd quarter of 2006. The airline, which emerged from bankruptcy in February 2006, lost -$58.1 million, through the 1st 9 months. It lost -$41.5 million last year.
(ALO) is interviewing Flight Crew (FC) and is hiring. The carrier is accepting resumes, and expects its next class in January.
Sabre Airline Solutions' SabreSonic suite was chosen by Aloha Airlines (ALO).
737-2K5 (22597, N250TR), returned to (PACE) (PIE). 737-236 (23172, N153FV), Pegasus (PSS) leased, ex-(LV-ZTJ).
January 2008: 2007 Performance Statistics: 3.09 billion (RPK)s traffic (+5.81%); +2.96% ASK)s; +2.13 load factor 77.7% LF; 11.46 million (FTK)s (+9.2%) freight traffic; 3.89 million passengers.
SEE ATTACHED - - "ALO-2007-STATS."
February 2008: The USA Department of Transportation released its final Air Travel Consumer Report for 2007 and said that, according to the Bureau of Transportation Statistics, the 20 USA carriers recording ontime performance reported a 73.4% ontime arrival rate, down -2 points from 2006. In addition, mishandled baggage reports increased +4.5% to 7.03 per 1,000 passengers, while consumer complaints soared +58.2%. In December, airlines reported a 64.3% ontime arrival rate, down from 70.8% in the year-ago month. Cancellations of scheduled domestic departures rose to 3.5% from 3% in December 2006.
(ALO) and Hawaiian Airlines (HWI) led the way in punctuality, followed by US Airways (AMW)/(USA) at 74.5%. American Eagle Airlines' 53.6% was the worst ontime rate and its 8.3% cancellation rate also was tops. Frontier Airlines (FRO), based in wintry Denver, managed to operate the highest proportion of its scheduled flights at 99%.
Willis Lease Finance added (ALO) to the North American engine-sharing agreement. Other members include American Airlines (AAL), Southwest Airlines (SWA), WestJet (WJI), and Alaska Airlines (ASA) covering (CFM56-7B)s powering 737s. The pool represents >500 airplanes to be serviced.
March 2008: Aloha Airlines (ALO), which emerged from bankruptcy in February 2006, filed Chapter 11 again and cited actions by Mesa Air Group's "go!" as the main impetus behind the latest filing. "It's a travesty and a tragedy that the illegal actions of a competitor, and other factors completely beyond our control have forced us to take this action," (CEO) David Banmiller said. "Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for Aloha (ALO)." Company officials said they will ask the bankruptcy court for permission to continue operating while going through Chapter 11 restructuring. (ALO) and Hawaiian Airlines (HWI) have been engaged in a fierce battle against "go!" since it began low-fare inter-island service with 50-seat CRJs in June 2006. Both took legal action against the startup, charging that Mesa had misused confidential information obtained when it was considering an acquisition of the island carriers. (HWI) was awarded $80 million in October 2007 by a bankruptcy court. (ALO)'s case is still pending.
The inter-island fare wars and the continued escalation of fuel costs have chipped away at profits for all of the carriers. "In the highly competitive inter-island market, (ALO) was forced to match "go!"'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel," (ALO) said in a statement. "The action taken by (ALO) reflects the difficult operating environment in Hawaii's airline industry," Hawaiian (HWI) President & (CEO) Mark Dunkerley said. "It is extremely challenging and marked by high operating costs, record high fuel prices and a very competitive pricing structure."
(ALO) is privately held and does not release financial information, but in December, it confirmed that it had endured a -$15.1 million loss in the 2007 3rd quarter, widened from a -$9.9 million deficit in the year-ago period. The "Honolulu Star-Bulletin" reported that (ALO) has posted 16 straight quarterly losses.
(ALO) said it received USA Bankruptcy Court approval to continue operating and that it is looking for a possible buyer. "We are grateful to the USA Bankruptcy Court for enabling us to move ahead and continue all operations while (ALO) seeks additional investors and new opportunities," President & (CEO) David Banmiller said. The airline blamed its financial woes primarily on what it called "predatory pricing" by "go!." However, "go!" accounts for only 7% of the capacity and 8% of the Hawaiian inter-island market. Both (ALO) and Hawaiian Airlines (HWI) have added capacity since "go!" launched operations. (ALO) has been in discussions with investors willing to buy some or all of the airline, according to "The Honolulu Advertiser." "We're talking to a lot of people in the industry," Banmiller told the paper, but he declined to name any potential suitors. (ALO) indicated that its chief financial backer, California-based Yucaipa Co (YUC), cut off funding, forcing the carrier to seek new owners.
At a hearing, (ALO) reported that it had about $3.8 million in cash and estimated that its expenses over the ensuing 10 days likely would amount to $2.3 million. It listed assets of $215.9 million and liabilities of $283.9 million. It lost -$81 million in 2007 and -$41.2 million in 2006, according to court filings. It operates a fleet of 26 737s.
A Seattle-based cargo company offered to buy the cargo operations of Aloha Airlines (ALO). The "Associated Press" reported that Saltchuk Resources placed a bid for Aloha's cargo assets, equipment and service lines. Saltchuk has 6,000 employees and has been active in Hawaii since 2000. It also owns Northern Air Cargo (NAC), the largest cargo carrier in Alaska. The transaction is subject to approval by the USA Bankruptcy Court, and an (ALO) spokesperson said the companies will file a motion to have the bid considered. "We believe our knowledge of Hawaii, coupled with our extensive air cargo operations experience, positions us well to help take (ALO) Cargo to the next level," Saltchuk President, Tim Engle said.
(ALO) has ceased its passenger operations. (ALO) operated its last scheduled flight, shutting down operations after 61 years of service.
The carrier, which flew both inter-island and transpacific routes, filed for bankruptcy March 20. It had not been profitable since emerging from a previous bankruptcy 2 years ago. It appears to be the 1st casualty of a fierce inter-island fare war, kicked off in June 2006 when Mesa Air Group launched "go!," which featured cut-rate fares. At the time, analysts predicted the market would not sustain 3 airlines. "This is an incredibly dark day for Hawaii," (ALO) President & (CEO) David Banmiller said. "We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business. We had no choice but to take this action." The shutdown will affect some 1,900 employees, (ALO) said. "What happened is that both sides, Mesa and (ALO), felt that the other side was close to throwing in the towel," aviation historian Peter Forman, who wrote a history of the state's airline industry, said. "This has not been a profitable operation for Mesa. (ALO) was holding off before making an announcement. They thought that Mesa would bow out 1st."
Hawaiian Airlines (HWI) and "go!" announced they will increase service to fill the void, while (ALO) said it will work with code share partner United Airlines (UAL) to assist customers. It will continue cargo and aviation service operations, while a USA Bankruptcy Court sorts through bids. (HWI) will add +6,000 seats and will fill empty seats on regularly scheduled flights with displaced Aloha (ALO) passengers. "We are maximizing our airplanes and resources to keep inter-island traffic and cargo moving," President & (CEO) Mark Dunkerley said. "(HWI) can accommodate all of (ALO)'s traffic."
Go! will increase daily flights to 94 from 54 and will allow (ALO) passengers to fly standby for no additional fee. "We will continue to adjust our schedule to satisfy demand and work hard to provide the highest quality, lowest cost service to the people of Hawaii," Mesa Air Group, Chairman & (CEO) Jonathan Ornstein said.
SEE ATTACHED ABOVE - - "ALO-GO-2008-03."
April 2008: 2 737-76Ns (28640; 28641), returned to (GECAS) (GEF).
May 2008: Aloha Airlines (ALO)'s cargo operation, which employs 300 and transports 85% of goods moving by air among the Hawaiian Islands aboard 6 737-200Fs, reached agreement to be purchased by Seattle-based, Saltchuk Resources for an undisclosed sum. The entity will be renamed "Aloha Air Cargo" and run by (COO) Michael Coffman, formerly Senior VP Airline Operations for Aloha (ALO). (ALO) declared bankruptcy and shut down its passenger services after 61 years at the end of March, but continued to operate its cargo division as it attempted to sell it off.
Cargo flights temporarily ceased last week, when it appeared Saltchuk's bid had fallen through. But Saltchuk said it "reengaged" after receiving a phone call from USA Senator Daniel Inouye (Democrat-Hawaii), Chairman of the Senate Commerce & Transportation Committee, urging it to reconsider. A deal, terms of which were not disclosed, was reached and a USA Bankruptcy Court appointed a trustee to oversee the restarted cargo flights until May 14, when the Saltchuk purchase is expected to be finalized. The Seattle company's decision was driven by the fact that it already owns Hawaiian Tug & Barge, which offers inter-island sea shipping.
It is unclear whether (ALO)'s 300 cargo employees will be retained. "So far, Saltchuk has declined to say whether they will meet with employees or employ current (ALO) pilots (FC) and other employees," Air Line Pilots Assn (ALPA), Aloha (ALO) (MEC) Chairman David Bird said. "(ALPA) is ready to meet with Saltchuk immediately to make sure that operations continue without interruption and that appropriate consensual arrangements can be reached."
June 2008: Genesis Lease of Ireland will lease 2 former Aloha Airlines (ALO) 737-700s to Brazil's VRG (VAR) for 7 years each. Delivery is expected before August.
November 2008: Aloha Airlines (ALO) may grace Hawaii's skies again, though this time the name would be used by the bankrupt carrier's nemesis, the owner of "go!" airline. Mesa Air Group Inc made the deal with (ALO)'s former majority owner, Yucaipa Companies (YUC), to use the (ALO) name as part of settling a lawsuit in which (ALO) alleged that Mesa misused confidential information to launch "go!" and drive (ALO) out of business. Other settlement terms call for giving (ALO)'s roughly 3,500 former employees travel benefits on "go!," paying Yucaipa $2 million, and making Yucaipa (YUC) a significant owner of Mesa by issuing the company close to 2.7 million shares of common stock, representing 10% of Mesa stock.
Phoenix-based Mesa said it resolves a potentially damaging lawsuit and allows the company to focus on providing inter-island air service possibly under the historic (ALO) name early next year. In a way, the pact stands to resurrect a 62-year-old kama'aina airline that ceased flying in March. But some former (ALO) employees cringed at the idea of "go!" recasting itself as (ALO). "How ironic is that?" said Wayne Wakeman, a 20-year (ALO) pilot (FC), who is still hunting for a job eight months after (ALO)'s shutdown. "They tried to put us out of business, and now they want to use the name Aloha (ALO). It kinda would be a slap in the face."
Still, Wakeman said he believes most former (ALO) employees would use "go!" travel benefits, despite the ill will toward the airline, because similar travel benefits are valuable and were frequently used by (ALO) employees when they had them.
Mesa has yet to define what kind of inter-island travel benefits it will provide and for how long. Helen Sham, who assisted passengers as an (ALO) flight attendant (CA) for 41 years, said she won't be flying free or at reduced cost on "go!" or a Mesa-owned, (ALO). "They did run us out," she said. "My feeling is not with them." Sham recently landed a job with "go!" rival Mokulele Airlines, and said the spirit of (ALO) has moved on with its former employees.
Hawaiian Airlines (HWI), (ALO)'s longtime and mostly friendly rival, reserved comment on Mesa's tentative deal to re-brand itself as Aloha (ALO). Paul Skellon, a spokesman for Mesa, said the primary objective for Mesa settling the lawsuit (ALO) filed in January 2007 wasn't to rebrand go! as (ALO), but to remove a potential expense that could have been costly.
A similar lawsuit by Hawaiian (HWI) against Mesa resulted in an $84 million court judgment that was appealed and then settled this year for $52.5 million. But if Mesa obtains (ALO)'s name, it would give the carrier a strong brand well known in Hawaii and on the Mainland that would benefit Mesa, especially if the company ever begins transpacific service. Skellon said there are no plans to fly to the Mainland, but it could happen one day.
"We intend to carry on (ALO)'s proud tradition, maintain Mesa's status as Hawaii's low-cost air carrier, and look forward to future growth opportunities made possible with this settlement," Jonathan Ornstein Mesa Chairman & (CEO) said.
Mesa's settlement with Yucaipa (YUC) is difficult to value. Shares of Mesa stock being issued to Yucaipa (YUC) are worth around $538,000, based on Mesa stock that closed at 20 cents a share. On top of the $2 million in cash, Yucaipa (YUC) plans to license the (ALO) name to Mesa for undisclosed terms. Licensing the (ALO) name to Mesa is subject to Yucaipa (YUC) being the high bidder for the name and other intellectual property at a bankruptcy court auction. Anyone wanting to outbid Yucaipa (YUC) will have to offer at least $575,000 for the intellectual assets under auction guidelines. Yucaipa (YUC), as the largest creditor in (ALO)'s bankruptcy, has offered to pay $25,000 in cash and forgo trying to collect $500,000 of the >$106 million, it claims to be owed. The company could raise its bid if competition emerges. (YUC) made a similar credit bid of $10 million to acquire the rights to (ALO)'s lawsuit against Mesa.
Other (ALO) assets sold, included a contract services division and an air cargo operation now doing business as Aloha Air Cargo.
Yucaipa (YUC) is a private investment firm headed by California billionaire Ron Burkle. (YUC) and former professional football player Willie Gault purchased (ALO) and brought it out of bankruptcy in 2005. (ALO) was founded by publisher Ruddy Tongg as "Trans-Pacific Airlines" in 1946, and in 1958 was renamed Aloha Airlines (ALO). The airline filed for bankruptcy on March 20, after losing >$120 million in the previous two years, because of soaring fuel prices and a heated inter-island fare war touched off by "go!," then abruptly shut down March 31.
Some comments on the above follow:
"Yup, Ornstein taking the "Aloha" name is like stealing a co-workers wife, moving into his house, sleeping in his bed, wearing his shirts and hoping no one will notice. I've not spoken to a single person who thinks this is right and this is just business. I'm flying Mokulele Air. They're hiring former (ALO) employees, and those people will continue the aloha tradition there. (ALO) is more than a name; its a way of life and something Jon Ornstien will never understand."
"What Mesa is doing is pretty cold. Kill Aloha Airlines (ALO), then use its name. I suspect that was the plan all along. How do you feel about this? My advice is to vote with your wallet."
They call it "hudzpah," where they come from .... here we call it no class. Ornstein ruined lives of good people, hard working (ALO) employees and their families. Now he wants to take away their dignity and the fond collective memories of a kamaaina company by "re-branding" his "go!" carrier to (ALO), so he can capitalize on its good name and corporate goodwill. This good name was built brick by brick by those loyal employees. It matters to us locals, but it won't to the occasional tourist who books flights on the cheap. This isn't worth the one year of "free stand-by flights on "go!" that he and Yucaipa (YUC) will offer former employees to compensate them for their mysery. No shame, and no class."
December 2008: The Mesa Air Group announced a settlement with the former controlling shareholder of Aloha Airlines (ALO), the Yucaipa Companies (YUC), ending the latter's lawsuit against the "go!" operator and featuring a provision under which Mesa may rebrand its inter-island subsidiary as (ALO) "in the near future." Mesa will make a cash payment of $2 million, issue shares of common stock equal to 10% of the current outstanding number, provide "certain" travel benefits to former (ALO) employees and license the (ALO) name assuming Yucaipa (YUC) is able to acquire it at an upcoming bankruptcy court auction.
Later, a USA Bankruptcy Court judge blasted Mesa Air Group's plans to re-brand its Hawaiian inter-island subsidiary "go!" as (ALO) and refused to approve Yucaipa Company's (YUC) purchase of (ALO)'s intellectual property rights. (YUC), the former controlling shareholder of (ALO), outbid Hawaiian Airlines (HWI) in a bankruptcy auction (it paid $750,000) for the rights to the (ALO) name and, under on an agreement it reached with Mesa "go!" was in position to be re-branded as (ALO) "in the near future." But Judge Lloyd King stated that no decision on the sale of (ALO)'s branding rights would be made until at least February 19 and said the re-branding would be disrespectful to former (ALO) employees. "Mesa and "go!" have been given credit for the demise of (ALO)," he said, according to news reports, adding that allowing "go!" to re-brand as (ALO) would "stand [the brand] on its head." Mesa reportedly agreed to license the (ALO) name for 10 years in exchange for 1% of its inter-island ticket revenue (minimum $600,000) and 30% of the pre-tax profit earned by the operation.
December 2008: Aloha Air Cargo (ALO) appoints Mike Malik, President.
March 2009: Saltchuk Air Cargo is to run Aloha Air Cargo (ALO), Alta and Northern airlines.
The USA Bankruptcy Court judge invalidated the transfer of the Aloha Airlines (ALO) brand to Mesa Air Group for use on its "go!" subsidiary because the sale by Aloha (ALO) shareholder, the Yucaipa Company (YUC) was not public. A 2nd auction will be held.
April 2010: Jeff Bell, Senior Director Sales & Business Development.
August 2010: Aloha Air Cargo (ALO) appointed Lillian Rodolfich to Corporate Controller and promoted Beau Tatsumura to Senior Director Maintenance & Engineering, Frank Silva to Director Quality & Reliability & Chief Inspector, and Jeremy Kubler to Manager Quality & Reliability.
February 2011: Aloha Air Cargo (ALO) is not currently hiring pilots (FC).
January 2012: Aloha Air Cargo (ALO) has named Kary Morihara as Director Training & Development, where she will focus on creating a consolidated training and development department.
(ALO) is recruiting 737-200 First Officer Flight Crew (FC) and SAAB 340A First Officer (FC). Applicants can apply online. See FltOps.com and FAPA.aero.
October 2012: Aloha Air Cargo (ALO) is currently interviewing pilots flight crew (FC).
See FAPA.aero: Pilot Career Conferences & Job Fairs
...For Future & Active Pilots (FC).
August 2013: According to FAPA.aero, Aloha Air Cargo (ALO) is not currently hiring Flight Crew (FC).
October 2013: Aloha Air Cargo (ALO) has chosen Trax maintenance software for ground, flight and maintenance operations across Hawaii and as it expands to the West Coast. (ALO) will implementing X1, the latest version of Trax, which includes over 20 modules for virtually every aspect of airplane maintenance.
February 2014: 737-330 (27904, N904JW), ferried Tucson - Miami for cargo conversion.
August 2014: Aloha Air Cargo (ALO) begins 5x-weekly, Honolulu - Los Angeles Boeing 767-300F service on October 23.
2 Saab 340As (046, N843KH, "KE KELA;" 108, N844KH "HOKO AO"), deliveries.
November 2015: 737-319F (25606, N303KH), converted to freighter.
September 2016: Saab 340AF verried Honolulu to Bangor for storage.
Click below for photos:
ALO-737 N823AL FUNBIRD
0 ORDERS 737-100 (JT8D HK). 2 CANCELED.
0 737-2K5 (JT8D HK) (773-22597, N250TR), (PIE) WET-LSD 2006-06. RTND 2007-04. LSD (AGAIN) 2007-08. RTND 2007-12.
0 737-2M6C (JT8D-15 HK) (637-21809, /80 N805AL "HOAPILI"), ST MIDAMERICAN AEROSPACE 2006-04. FREIGHTER.
1 737-2P6 (JT8D HK) (530-21613, N835AL), BF INTERLEASE 2006-03. 127Y.
0 737-2Q9 (JT8D-15 HK) (551-21719, /79 N804AL "KAUIKEAOULI;" 552-21720, /79, N809AL "KEEAUMOKU"), (ACG) LSD, 21720 RTND, 21719 WFU AT MOJAVE 2002-09. PARTED OUT. 127Y.
0 737-2S2C (JT8D-9A HK) (600-21927, /90 N806AL "LOT KAPUA'IWA"), PARTED OUT 2005-06. 127Y.
2 737-2T4 (JT8D-9A HK) (1151-23443, /85 N807AL "KE'OPUOLANI;" 1155-23445, /85 N808AL "KALELEONALANI"), COMPASS CAPITAL LSD, 127Y.
2 737-2X6C (JT8D-9A HK) (1036-23122, /84 N816AL "KING DAVID KALAKAUA;" 1113-23292, /85 N817AL "KALANIKUPULE"), "C" CHECK AT SPAR 1999-07. (663-22148, /80 N802AL "KING KAMEHAMEHA") WFU 2002-10. FREIGHTER.
2 737-2X6C (JT8D-17A HK) (1042-23123, N841AL; 1046-23124, /84 N840AL), EX-(ASA), BCI LEASING LSD 2006-11. 111Y/COMBI. FREIGHTER.
0 737-2Y5 (JT8D-9A HK) (1523-24031, /88 N810AL "LU'UKIA"), FLEET CAPITAL LSD. RTND & LST (CSV) 2009-09. 127Y.
0 737-209 (JT8D-9A HK) (1579-23913, /88 N827AL "MATAIO KEKUANAOA"), EX-(TML), SANWA LSD, RTND 2006-04. 127Y.
1 737-210C (JT8D-17 HK) (344-20917, /74, N834AL), EX-(TAC)/(FSB). BF (EST) 2006-03. FREIGHTER 14T.
0 737-228 (JT8D HK) (936-23001, N252TR), (PIE) WET-LSD 2001-07. RTND 2006-10.
3 737-230 (JT8D-9A HK) (703-22117, /81 N818AL "KAUMUALI'I;" 790-22138, /81 N820AL "PAI'EA;" 1078-23154, N823AL SEE PHOTO; 1079-23155, /85 N821AL "LA'A MAIKAHIKI;" 1078-23154, /85 N823AL "LIHILILO"), EX-(DLH). 23154 RTND 2006-04; LSD AGAIN FROM OASIS 2006-08 (IN "FUNJET VACATIONS" COLORS). 23154; RTND BCI AIRCRAFT 2008-06. 127Y.
1 737-236 (JT8D HK) (1077-23168, N828AL; 1081-23169, N151FV; 1088-23171, N152FV), EX-(ASA), (PSS) LSD. 23168; 23169; RTND 2008-04.
0 737-236 (JT8D HK) (1091-23172, N843AL), (PSS) LSD 2007-12, EX-(LV-ZTJ). RTND AUTOMATIC LLC 2008-04.
0 737-236 (JT8D HK) (1102-23225, N836AL), (PSS) LSD 2006-10. RTND AUTOMATIC LLC 2008-04.
0 737-277 (JT8D HK) (806-22650, N184AW), JETRAN LSD 2004-07. NTU.
1 737-282C (JT8D HK) (1002-23051, N826AL), IN MAINTENANCE 2006-09 - 2007-01.
1 737-290C (JT8D-17 HK) (760-22577, /81 N730AS), BF (ASA) 2006-08. 111Y/COMBI.
1 737-290C (JT8D-17 HK) (1032-23136, N842AL), KP AVIATION LSD 2007-09.
0 737-25A (JT8D-9A HK) (1486-23791, /87 N819AL "KEKAULIKE"), (TBC) LSD 1995-12. RTND, LST PREMIER AIRLINES, NIGERIA 2005-11. 127Y.
1 737-282C (JT8D-9A HK) (1002-23051, /83, N286AL "KAHUHIHEWA"), EX-(TAP), (AFD) 8 YR LSD 1998-02. (23051; FOR SALE/LEASE BCI AIRCRAFT LEASING TEL: (312) 264-2244 firstname.lastname@example.org LOCATED IN CHICAGO). 127Y.
1 737-282QC (JT8D-9A HK) (978-23045, /83, N824AL "KALANIOPU'U"), EX-(TAP), 8 YR LSD. 127Y.
0 737-297 (JT8D-9A HK) (738-22426, /81 N762AL "KING LUNALILO"), SCRAPPED 2001-05. 127Y.
0 737-300 (CFM56-3), 2002-05. 3 RTND.
0 737-300 (CFM56-3), LST (CAL), SOLD.
1 737-319F (CFM56-3) (25606, N303KH), CONVERTED TO F, 2015-11. FREIGHTER.
1 737-330F (CFM56-3) (27904, N904JW), CONV TO FREIGHTER 2014-03. FREIGHTER.
0 ORDERS 737-400. 2 CANCELED.
1 737-7Q8 (CFM56-7B24) (1511-30674, /04 N751AL), (ILF) 12 YR LSD 2004-06. WITH WINGLETS. 12F, 112Y.
0 737-73A (CFM56-7BB24) (390-28499, /99 N738AL "KUAPAKA'A;" 414-28500, /99 N739AL "MO'IKEHA"), (AWW) LSD 1999-10, WITH WINGLETS. RTND 2008-04. 12F, 112Y.
1 737-76N (CFM56-7B24) (799-28640, /01 N740AL; 809-28641, /01 N741AL; 30830, /01 N742AL) (986-28654, N316ML; 1013-32582, N748AL; 347-29904, /02 N745AL; 372-29905, /02 N746AL, "KAHA'I;" 429-30050, /02 N748AL), (GEF) 15 YR LSD. 29904 RTND 2005-06. 29905; RTND, LST (GOT) 2005-10. 28654; & 32582; RTND (GEF). 28640; 28641; 30830; RTND (GEF) 2008-04. WITH WINGLETS. 12F, 112Y.
4 737-76N (CFM56-7B24) (347-29904, /99 N745AL; 372-29905, /99 N746AL; 429-30050, /99 N748AL; 32738, N749AL), EX-(LAZ). WITH WINGLETS. 12F, 112Y.
0 737-76N (CFM56-7B24) (1392-32738, N749AL; 1503-32743, N750AL, 2004-05), (GEF) LSD. 32738; 32743; RTND, LST (GOT) 2005-11. WITH WINGLETS. 12F, 112Y.
0 737-8K2 (CFM56-7B27) (2243-34169, PH-HZO), (TAV) LSD 2007-11. RTND 2008-04. 186Y.
1SAAB 340AF (046, N843KH "KE KELA;" 108, N844KH "HOKO AO"), 2014-08. ex-(XA-STX). 046 SENT TO STORAGE 2016-09.
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GORDON BETHUNE, CHAIRMAN EX-(CAL)/(TBC) (2006-09), RETIRED.
LEE STEELE, PRESIDENT, ALOHA AIR CARGO (ALO).
DAVID BANMILLER, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO), EX-(JAM) (2004-11).
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