Aloha Airlines

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Aloha Airlines
IATA
AQ		 ICAO
AAH		 Callsign
ALOHA
Founded July 26, 1946 (as Trans-Pacific Airlines)[1]
Commenced operations 1946-07-26
Ceased operations 2008-03-31 (ceased passenger service)
Hubs Honolulu International Airport
Fleet size 6
Destinations 5
Parent company Saltchuk Resources, Inc.
Headquarters Honolulu, Hawaii
Key people
Website: http://www.alohaaircargo.com

Aloha Airlines is an American cargo airline headquartered in Honolulu, Hawaii, USA, operating from a hub at Honolulu International Airport. It provided passenger service until March 31, 2008.

Contents

[edit] History

[edit] Propeller era

The airline was founded as charter carrier Trans-Pacific Airlines by publisher Ruddy Tongg as a competitor to Hawaiian Airlines, commencing operations on Aloha Friday, July 26, 1946, with a single World War II-surplus Douglas C-47 (DC-3) on a flight from Honolulu to Maui and Hilo. The name reflected Tongg's vision of a trans-oceanic airline connecting California, Hawaii, and China. It soon earned the nickname "The Aloha Airline" and was flying four aircraft by the end of the year. Approval to operate as a scheduled airline came when President Harry S. Truman signed the certificate on February 21, 1949, with the first scheduled flight on June 6, 1949, following ceremonies held the previous day.

In 1952, the airline reported its first annual profit: $36,410.12. The airline's market share rose to 30% that year, up from 10% in 1950, the year the airline adopted the name TPA-The Aloha Airline. However, the introduction of the Convair 340 at Hawaiian Airlines halted further growth of TPA's market share for over five years. In 1958, real estate developer Hung Wo Ching, whose family held a sizable stake in the airline and following overtures by Tongg, was elected president of the airline. In November of that year, the company changed its name again, becoming Aloha Airlines. On April 15, 1959, Aloha took delivery of its first Fairchild F-27 turboprop aircraft. These aircraft were unique to Aloha, built with a stronger keel beam and thicker belly skin to satisfy concerns about ditching the high-wing aircraft. That summer, Aloha's market share jumped to 42%.

[edit] Jet engine era

Aloha retired its last DC-3 on January 3, 1961, becoming the second airline in the United States to operate an all-turbine fleet. In 1963, the airline took delivery of two Vickers Viscounts from Austrian Airlines and soon acquired a third. Soon, the airline made the move to pure jets, with its first BAC One-Eleven arriving in Honolulu on April 16, 1966. The last F-27 was retired from service in June 1967. As Hawaiian took delivery of larger Douglas DC-9-30s, Aloha realized its smaller One-Elevens, which also took performance penalties in Kona, put it at a disadvantage. The airline went shopping and placed an order for two Boeing 737-200s in December. Named "Funbirds", the Boeing jets entered service on March 2, 1969. The massive capacity increase hurt both airlines, and in 1970, the first of three unsuccessful merger attempts between the two rivals (the others coming in 1988 and 2001) was made. In October 1971, the airline sold its remaining Viscounts and became an all-jet airline.

In 1983, Aloha introduced its AlohaPass frequent flyer program. In 1984, the airline leased a McDonnell Douglas DC-10-30, and on May 28, inaugurated service with the aircraft between Honolulu, Guam, and Taipei under the name Aloha Pacific. The operation, however, was unable to compete with Continental Airlines, and was discontinued on January 12, 1985. In October of that year, Aloha acquired Quick-Change 737 aircraft that could be quickly converted from a passenger configuration to all-cargo freighter for nighttime cargo flights. In February 1986, Aloha began weekly flights between Honolulu and Kiritimati (Christmas Island), becoming the first airline to operate ETOPS 737s.

In late 1986, Ching and vice-chairman Sheridan Ing announced plans to take the company private, and it remained in the hands of the Ing and Ching families until its emergence from bankruptcy in 2006, when additional investors including The Yucaipa Cos., Aloha Aviation Investment Group, and Aloha Hawaii Investors LLC took stakes in the airline. In 1987, the airline acquired Princeville Airways, renaming Aloha IslandAir, which became known as Island Air in 1995. In 2003, Island Air was sold to Gavarnie Holding and became an independent airline.

On February 14, 2000, the airline began mainland service, flying newly-delivered Boeing 737-700s from Honolulu and Kahului to Oakland, California.

Aloha Airline's longest inter-island route was 216 miles, while the shortest route was a mere 62 miles. Average travel distance per inter-island flight was 133 miles.[citation needed] Aloha also marketed some inter-island routes served by partner Island Air, and passengers earned miles in either its own frequent flyer program, AlohaPass, or in United Airlines' Mileage Plus program.[2][3][4]

[edit] Economic challenges and passenger shutdown

Rising costs and an economic recession in Japan put Aloha into a defensive position in the early 2000s, soon exacerbated by the September 11, 2001 terrorist attacks, the SARS panic of 2003, and soaring fuel prices. On December 30, 2004, Aloha Airlines filed for Chapter 11 bankruptcy protection in an attempt to cut costs and remain competitive with other airlines serving Hawaii. Following approval of new labor contracts and securing additional investment from new investors, the airline emerged from bankruptcy protection on February 17, 2006. On August 30, 2006, Gordon Bethune was named Chairman of the Board.

Citing losses from a protracted fare war incited by inter-island competitor go! and high fuel prices, Aloha filed for Chapter 11 bankruptcy protection again on March 20, 2008.[5] Ten days later, on March 30, 2008, Aloha Airlines announced the suspension of all scheduled passenger flights, with the final day of operation to be March 31, 2008.[6] The shutdown resulted in the layoffs of about 1,900 of the company's roughly 3,500 employees.[7] Hawaii Governor Linda Lingle asked the bankruptcy court involved to delay the shutdown of Aloha Airlines passenger services, and forcibly restore passenger service,[8] however, federal Bankruptcy Judge Lloyd King declined, saying the court should not interfere with business decisions.[9]

After the shutdown of passenger operations, Aloha and its creditors sought to auction off its profitable cargo and contract services division. Pacific Air Cargo emerged as the highest bidder for the contract services division; the sale of the division to Pacific Air Cargo is currently in progress.[10] Pacific Air Cargo will operate the division under the name Aloha Contract Services.[11]

Several companies expressed interest in purchasing Aloha's cargo division, including Seattle-based Saltchuk Resources, California-based Castle & Cooke Aviation, and Hawaii-based Kahala Capital (which included Richard Ing, a minority investor in the Aloha Air Group and member of Aloha's board of directors).[12] However, a disagreement between cargo division bidders and Aloha's primary lender, GMAC Commercial Finance, ended with the bidders dropping out of the auction.[13] Almost immediately afterwards, GMAC halted all funding to Aloha's cargo division, forcing all cargo operations to cease; at the same time, Aloha's board of directors decided to convert its Chapter 11 bankruptcy reorganization filing into a Chapter 7 bankruptcy liquidation.[13]

Saltchuk Resources decided to renew its bid to purchase the cargo division at the urging of U.S. Senator Daniel Inouye, and a deal between Aloha and Saltchuk was struck and approved by the federal bankruptcy court, where Saltchuk would purchase the cargo division for $10.5 million.[14] The sale was approved by federal Bankruptcy Judge Lloyd King on May 12, 2008, with the sale expected to close two days later.[15]

Prior to its bid for Aloha, Saltchuk Resources was already present in Hawaii through its subsidiaries Young Brothers/Hawaiian Tug & Barge, Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores. The company also owns Northern Air Cargo, Alaska's largest cargo airline. A new subsidiary, Aeko Kula Inc., was set up by Saltchuk to operate Aloha Air Cargo.

1956 Logo

Late 1950s Logo

1965 Logo

Early 1970s Logo

Late 1970s Logo

Aloha Old Logo

[edit] Destinations

Boeing 737-200
Boeing 737-200

As of May 2008, Aloha Airlines Cargo serves the following destinations:

[edit] United States

[edit] Hawaii

[edit] Former Destinations

Prior to the shutdown of its passenger services on March 31, 2008, Aloha Airlines provided passenger service the following cities:

[edit] United States

[edit] California

[edit] Hawaii

[edit] Nevada

* Note: Aloha Airlines also codeshared on Island Air flights to Hoolehua, Kapalua, and Lanai City using de Havilland Canada Dash 8 aircraft.

[edit] Fleet

As of April 2008, the Aloha Airlines fleet consisted of the following aircraft:[16]

Aloha Airlines Fleet
Aircraft Total Passengers
(First/Economy)		 Routes Notes
Boeing 737-200C 6 Cargo Hawaii Inter-Island Cargo
Former Passenger Fleet[17]
Boeing 737-200 13 127 (-/127) Hawaii Inter-Island
Boeing 737-700 8 124 (12/112) US Mainland
Boeing 737-800 1 162 (12/150) US Mainland
(primarily Kahului-Sacramento)		 Leased from TransAvia from
November 2007 - April 2008 [18]

As of March 2008, the average age of the Aloha Airlines fleet was 18.2 years.[19]

[edit] Codeshare agreements

Aloha Airlines had codeshare agreements with the following airlines:

[edit] Incidents and accidents

Main article: Aloha Airlines Flight 243
Aloha Airlines Boeing 737-297, registration N73711 at Kahului Airport on April 28, 1988 after part of its fuselage was torn away in flight.
Aloha Airlines Boeing 737-297, registration N73711 at Kahului Airport on April 28, 1988 after part of its fuselage was torn away in flight.

On April 28, 1988, Aloha Airlines Flight 243 Boeing 737 (N73711) inter-island flight departed Hilo Airport for Honolulu International Airport, carrying 89 passengers and six crew. The airplane experienced rapid decompression when an 18-foot section of the fuselage roof and sides was torn away. One flight attendant (Clarabelle Lansing) was ejected from the aircraft during the decompression; her body was never recovered. Several passengers sustained life-threatening injuries, including instances of massive head wounds. The pilots declared an emergency and landed at Kahului Airport on Maui despite the damage. Subsequent investigations concluded that the accident was caused by metal fatigue. The disaster caused almost all major United States air carriers to retire their oldest airplane models.[22]

The event was dramatised in a 1990 television movie titled Miracle Landing starring Connie Sellecca, Wayne Rogers and Nancy Kwan. The incident was also the focus of an episode of the series Mayday (Air Crash Investigation and Air Emergency), shown on the Discovery Channel.

[edit] References

  1. ^ Norwood, Tom; Wegg, John (2002). North American Airlines Handbook, 3rd, Sandpoint, ID: Airways International, p. 9. ISBN 0-9653993-8-9. 
  2. ^ Where we Fly. Aloha Airlines. Retrieved on 2007-04-09.
  3. ^ AlohaPass. Retrieved on 2007-04-09.
  4. ^ Codeshare partners
  5. ^ Blair, Chad. "Aloha Airlines files for second bankruptcy in 3 years, blames go! for losses", Pacific Business News, 2008-03-20. Retrieved on 2008-03-20. 
  6. ^ McAvoy, Audrey. "Aloha Airlines halting passenger service", BusinessWeek. Retrieved on 2008-04-25. 
  7. ^ Segal, Dave. "Aloha Air shuts down", Honolulu Star-Bulletin. Retrieved on 2008-05-03. 
  8. ^ "Lingle asks court to delay Aloha passenger service shutdown", The Honolulu Advertiser, 2008-03-30. Retrieved on 2008-04-25. 
  9. ^ Segal, Dave. "Ending service is Aloha’s call, court says", Honolulu Star-Bulletin, 2008-04-01. Retrieved on 2008-05-03. 
  10. ^ Aloha Airlines (2008-04-21). "Pacific Air Cargo is Highest Bidder for Aloha's Contract Services Unit". Press release. Retrieved on 2008-04-28.
  11. ^ "Aloha Contract Services. Retrieved on 2008-05-02.
  12. ^ Segal, Dave. "Turbulent aftermath", Honolulu Star-Bulletin, 2008-04-02. Retrieved on 2008-05-03. 
  13. ^ a b Segal, Dave. "Bidders drop out and funding halts", Honolulu Star-Bulletin, 2008-04-29. Retrieved on 2008-05-03. 
  14. ^ Segal, Dave. "Return flight", Honolulu Star-Bulletin, 2008-05-02. Retrieved on 2008-05-03. 
  15. ^ Segal, Dave. "Court allows Seattle firm to buy Aloha’s cargo division", Honolulu Star-Bulletin, 2008-05-13. Retrieved on 2008-05-14. 
  16. ^ Gomes, Andrew. "Aloha's cargo unit still in business", The Honolulu Advertiser, 2008-04-01. Retrieved on 2008-04-01. 
  17. ^ Segal, Dave. "Aloha air bankrupt", Honolulu Star-Bulletin, 2008-03-21. Retrieved on 2008-03-21. 
  18. ^ PH-HZO as the new Aloha aircraft for the winter period
  19. ^ Aloha Airlines Fleet Age
  20. ^ "Island Air launches independent Maui-Kona service", USA Today, Associated Press, 2004-05-12. Retrieved on 2008-05-01. 
  21. ^ "Feel like you're flying by the seat of your pants? Sit back and relax with these tips", The Seattle Times, 2008-04-20. Retrieved on 2008-05-10. 
  22. ^ Aloha Airlines Crash
  • Young, Branden. "Aloha Airlines: Ready to Protect Their Beachfront in Paradise", Airliners: The World's Aviation Magazine, Airliners Publications, July/August 2006, pp. 35-39. 
  • Forman, Peter (2005). Wings of Paradise: Hawaii's Incomparable Airlines. Kailua, HI: Barnstormer Books. ISBN 978-0-9701594-4-1. 

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