The Aloha Airlines name may fly Hawaii skies again

You may have heard that Aloha Airlines shut down on March 31, 2008.  In an odd twist of fate, the Aloha Airlines name may be revived.

Mesa Airlines entered the Hawaii market in 2006 with its regional company named go! Airlines.  Prior to go!, Aloha and Hawaiian Airlines were charging around $150 per roundtrip between the Hawaiian Islands.  go! started a fare war with with seats marketed as low as $10.  By the end of 2007, rates settled around $45 each way or $90 roundtrip.

In early 2008, higher oil prices affected airfares and interisland rates went up to about $120 roundtrip.  The fare increases probably were not enough to compensate for increased fuel costs.  Aloha Airlines went under due to fuel prices and the fare war initiated by go! two years earlier.

Many former Aloha Airlines employees blame go! for the shut down of their company.  Others blame Aloha Airlines' management and probably everybody acknowledges the effect of fuel price fluctuations. 

In settlement of a lawsuit between Mesa Airlines (owners of go!) and the majority owner of Aloha Airlines, Mesa has agreed to pay $2 million plus 10% of its outstanding stock to Aloha.  Former Aloha Airlines employees will receive travel benefits on go! airlines.  Finally, the terms may allow go! to be renamed to Aloha Airlines.  Many former Aloha Airlines employees are upset about the possibility of this name change.

When Aloha Airlines shut down, many island residents said the market just cannot support three interisland airlines.  Subsequently, Mokulele Airlines, a smaller propeller plane carrier, purchased jets and began interisland service in Hawaii.  Mokulele had a code sharing agreement with go! for some routes such as Hana and Kapalua on Maui to Honolulu.  go! airlines' management were upset about Mokulele's move and presumably the two companies are not friendly with each other anymore.

These events just go to show that anything is possible!

By the way, the picture at the top was done by me with a photo editing program.

Aloha, Mike Bates

Oahu MLS 

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