Aloha Airlines Shutting Down Passenger Operations

NEW YORK -- Hawaii-based Aloha Airlines, which filed for bankruptcy protection on March 20, said that Monday would be its last day of passenger operations.

Its code-share partner, United Airlines, and other airlines are prepared to accommodate Aloha's passengers, the airline said.

Passengers who do not want to be accommodated by other airlines should contact their travel agent or credit card company to request a refund, Aloha said.

The shutdown of the passenger operations will affect about 1,900 employees.

"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," said David Banmiller, Aloha's chief executive officer.

Story Continues Below

"Unfortunately, unfair competition has succeeded in driving us out of business," he added.

Aloha said its air cargo and aviation services units will continue to operate while the U.S. Bankruptcy Court seeks bids from potential buyers.

On March 27, Saltchuk Resources Inc announced its intention to buy Aloha's air cargo business, the airline said.

© Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Editor's note:
Why Oil Prices Will Go Much Lower After November Election. Best Ways to Profit Now.
The Recession's Silver Lining. What it Means for Investors.
Cash in on the Shocking Growth of Personal Debt
Which Stocks Should You Dump Immediately

115-115