Aloha shutting down

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Aloha Airlines shutting down passenger operations

Mon Mar 31, 2008 10:06am EDT

By Mark McSherry

NEW YORK (Reuters) - Aloha Airlines is shutting down its passenger  
operations less than two weeks after the Honolulu-based company filed  
for bankruptcy protection as a court seeks buyers for its remaining  
units.

Aloha has said its demise stemmed from "predatory pricing" from Mesa  
Air Group's (MESA.O: Quote, Profile, Research) low-cost go! airline.  
Mesa, whose shares rose 3 percent, was not immediately available to  
answer those claims on Monday.

Aloha said late on Sunday that Monday would be the last day for its  
passenger operations. The shutdown 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," Chief Executive David  
Banmiller said. "We had no choice but to take this action."

Aloha said code-share partner United Airlines (UAUA.O: Quote, Profile,  
Research) and other carriers were prepared to accommodate its  
passengers.

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

Full story:  http://www.reuters.com/article/ousiv/idUSN3137310020080331

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