Aloha Airlines Declares Bankruptcy
The Hawaii Based Air Carrier Flew Luxury Travelers for 60 Years
Luxury vacations in Maui, Kauai and others in the Hawaii island chain may be temporarily inconvenienced by Aloha shutting down. Are there larger ramifications as well?
Well, it sure looks like the party's over for Aloha Airlines. As of March 31, 2008, there are no more interisland or transpacific flights on the airline. Aloha Airlines execs declared bankruptcy around a week before that, and had been seeking a buyer. Hawaiian Airlines met with Aloha the day prior, but the two couldn't work out a deal. This is a loss for luxury travel fans; Hawaii (and especially Maui, the Big Island and Kauai) represent the epitome of attainable luxury vacations.
Fortunately for people with Hawaii luxury travel plans, other airlines have the capacity to accommodate Aloha ticket holders. Rex Johnson, President of The Hawaii Tourism Authority responded to Aloha's bankruptcy with a release stating that Aloha Airline's code-sharer, United Airlines, would be a primary air carrier for inconvenienced passengers. In addition, other airlines, hotels, and the State Legislature are coordinating on contingency plans.
Rex Johnson also has said that various hotels are offering special considerations for potentially stranded Aloha passengers. These considerations, obviously, include extended accommodations, and assistance in filling other needs related to tourism and travel. Aloha Airlines air cargo service is still in operation.
Ramifications for Travelers to and From Hawaii
- Hawaiian Airlines is expecting high passenger volumes as a result of Aloha ceasing passenger service. Hawaiian can't guarantee a seat for every Aloha ticket holder for original day of departure, but it and other airlines are doing their best to accommodate Hawaiian tourists who flew in on Aloha.
- Now, for those in the planning stage of a luxury Hawaii vacation, the bankruptcy and collapse of Aloha Airlines may seem like a mere blip in the search for amenable departure times or agreeable business-class amenities. The shutdown of Aloha Airlines will affect approximately 1,900 employees, however, and may be a harbinger of things to come. Many, many economists are predicting an upcoming recession, after all, and the first thing to cut down on for many is overseas travel.
- Hawaiian Airlines also declared bankruptcy (back in 2003), but has since restructured and now dominates the island chain's long-haul business (Pacific Business News, March 30, 2008). Only United Airlines has flown more vacation-seekers to and from Hawaii in 2006 than Hawaiian.
Aloha Airlines started business over 60 years ago. Rising fuel costs are said to be part of the reason for Aloha's bankruptcy, but the competition for vacation-seeking passengers has been quite intense as well. Many large airlines fly to and from Maui, Kauai, Oahu and the Big Island several times daily, and interisland ticket costs have been going for as low as $39 on go! airlines, a low-cost carrier.
Tough economic times affect us all, not the least of whom are those 1,900 Aloha Airlines employees. As luxury travel dials it down a notch, the ripples are felt throughout the world; the travel and tourism industry is (or, was) a massive business. It makes sense for those of us feeling the financial crunch to take more weekend getaways, and less full-out luxury trips. Is the shuttering of Aloha Airline's doors the first sign of future downturns in the luxury tourism market? Time will tell. In the meantime, the iconic hibiscus flower on its carriers' tails will be missed.
