Aloha Airlines shutting down passenger operations

By Mark McSherry

NEW YORK (Reuters) - Aloha Airlines is shutting down its passenger operations less than two weeks after the Honolulu-based company filed for bankruptcy protection as a court seeks buyers for its remaining units.

Aloha has said its demise stemmed from "predatory pricing" from Mesa Air Group's (MESA.O: Quote, Profile, Research, Stock Buzz) low-cost go! airline. Mesa, whose shares rose 3 percent, was not immediately available to answer those claims on Monday.

Aloha said late on Sunday that Monday would be the last day for its passenger operations. The shutdown will affect about 1,900 employees.

"We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business," Chief Executive David Banmiller said. "We had no choice but to take this action."

Aloha said code-share partner United Airlines (UAUA.O: Quote, Profile, Research, Stock Buzz) and other carriers were prepared to accommodate its passengers.

Passengers who do not want to use other airlines should contact their travel agent or credit card company to request a refund, Aloha said.

The company said its air cargo and aviation services units would continue to operate while the U.S. Bankruptcy Court seeks bids from potential buyers.

On Thursday, Saltchuk Resources Inc said it intended to buy Aloha's air cargo business, according to the airline.