Page last updated at 08:08 GMT, Monday, 31 March 2008 09:08 UK

Aloha grounded by Hawaiian rival

An Aloha plane
Aloha will continue to offer a cargo service.

Hawaiian carrier Aloha Airlines says it is to stop operating, blaming competition and high fuel prices.

The airline, which filed for bankruptcy protection in March, said it had run out of time to find a buyer or secure new funding.

Aloha blamed "predatory" pricing by a rival, Go!, as well as the battle to pass on fuel costs to passengers.

It added that since Go! began operating its inter-island flights 16 months ago, it had lost about $65m (33m).

"Unfortunately, unfair competition has succeeded in driving us out of business," said the firm's president, David Banmiller.

Previous problems

The airline, founded in 1946, is to stop taking reservations from Monday.

It is Hawaii's second-largest carrier, with 26 Boeing 737s serving five airports across the Hawaii archipelago and six mainland US destinations.

Another rival, Hawaiian Airlines, said that it would put on extra flights to accommodate Aloha passengers in the short term.

Aloha, which employs about 1,900 people, will continue to offer a cargo service.

The airline is no stranger to bankruptcy proceedings, having been through the courts in 2005 before restructuring its business.


SEE ALSO
State profile: Hawaii
01 Nov 07 |  Americas
Aloha bankruptcy scheme approved
30 Nov 05 |  Business

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