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Aloha Airlines shuts down passenger operations: report

NEW YORK
Mon Mar 31, 2008 3:28am EDT

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An Aloha Airlines jet flies after taking off from Honolulu International Airport March 30, 2008. Aloha Airlines, which filed for Chapter 11 bankruptcy protection on March 20, said on Sunday it will cease all passenger service after Monday. REUTERS/Hugh Gentry

NEW YORK (Reuters) - Aloha Airgroup Inc, parent of Aloha Airlines Inc, is shutting down on Monday, days after filing for bankruptcy protection, the Wall Street Journal reported in its online edition.

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The company, which employs about 3,500 people, had emerged from bankruptcy protection about two years ago.

According to the Journal, the closely held carrier said marketing partner United Airlines, a unit of UAL Corp (UAUA.O), and other airlines are "prepared to assist and accommodate Aloha's passengers who have been inconvenienced."

Representatives of Aloha Airgroup could not immediately be reached for comment.

Aloha had blamed its inability to generate sufficient revenue from its inter-island passenger business on predatory pricing by Mesa Air Group's (MESA.O) go! airline.

The airline, which has also been hurt by high fuel costs, offered 700 weekly inter-island flights in Hawaii and 140 flights to six west coast cities, the Journal said.

(Reporting by Justin Grant; Editing by David Holmes)



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