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UPDATE: ALOHA AIRLINES ENDS PASSENGER SERVICE! Many of today’s flights have been cancelled and NO tickets for flights after Monday will be honored. According to the Associated Press, Aloha’s president said, “We had no choice but to take this action.” They are working to seat passengers on other airlines. Read the article, and check with Aloha (they have updated information on their website) or contact your travel agent or credit card rep. MARCH 21 (original post): For the second time in about 2-years, Aloha Airlines filed for bankruptcy. A lot of the pain Aloha is feeling is caused by jet fuel prices; it’s difficult to plan a budget when your major cost just keeps going up, up, up. The other factor in the bankruptcy? Inter-island airfare WAR! This is a “war” of sorts that’s been going on for some time, and it involves 3 different airlines; let’s take a look at that — just click on “more”. |
The war pits Aloha (and Hawaiian Airlines) against cheap airfare upstart, Go Airlines. Go, a Phoenix-based carrier, has been accused of predatory pricing.
According to an Aloha press release, “In the highly competitive inter-island market, Aloha 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.”
Aloha has filed suit against Go, on the basis that the carrier illegally obtained Aloha’s pricing information.
As I mentioned on my site, there are factors making it unlikely that Aloha will continue to fly for much longer.
Comment by beatofhawaii.com — March 21, 2008 @ 2:21 pm