Aloha Pilots Seek Court Injunction

HONOLULU, April 18 /PRNewswire-USNewswire/ -- The Aloha Airlines pilots,
represented by the Air Line Pilots Association, Int'l, (ALPA), filed a
complaint in U.S. Bankruptcy Court today seeking injunctive relief against the
airline. ALPA asserts that Aloha Airlines management's total disregard for
pilots' collective bargaining agreement during the past few weeks has
triggered a "major dispute" under the Railway Labor Act, which governs airline
contract negotiations. ALPA seeks an order from the Court to force Aloha
Airlines to comply with its contract.

ALPA will continue efforts to resolve the major dispute with management, but
if no agreement is reached by 12:01 a.m. on Saturday, April 26, 2008, ALPA and
the Aloha pilots may, after following all of ALPA's internal preliminary
procedures, strike any or all of Aloha's operations.

"ALPA is ready to take any steps necessary to ensure that our contract is
upheld by this management," said Capt. John Prater, president of ALPA. "The
Aloha pilots have always displayed the highest sense of loyalty and support
for this union, their fellow employees and their company. We can't prevent
Aloha Airlines from ceasing its passenger operations, but we can prevent this
management from unlawfully rejecting the legally binding contract they
negotiated with their pilots."

ALPA alleges that the company, through its actions and expressed statements of
its president and chief executive officer, continues to repudiate the pilots'
collective bargaining agreement by terminating pilots out of seniority order,
failing to provide furlough pay and benefits, terminating the pilots' health
plan, recalling pilots out of seniority order, and failing to respect job
security provisions that require a prospective purchaser to employ the current
pilots in seniority order, among other things.

"Aloha has violated, and continues to violate, its obligations to make every
reasonable effort to maintain the working conditions of the Aloha pilots
pursuant to the contract," said Capt. David Bird, chairman of the Aloha arm of
ALPA. "We ask the court to recognize these violations and order the company to
comply with the contract."

Aloha Airlines filed for Chapter 11 bankruptcy on March 20 and abruptly ceased
its passenger service on March 31 after 61 years of service. Aloha continues
to operate its cargo service, which it is preparing to sell.

Aloha filed first for bankruptcy in 2004, and pilots agreed to concessions in
an effort to improve the airline's financial position and attract new
investors. The Aloha pilots agreed to a 20 percent pay cut, productivity
enhancements, and a 2-year "freeze" on their pension plan, which has since
been terminated. Aloha pilots gave more than $12 million worth of concessions
to the airline to support its previous restructuring efforts to ensure
stability and profitability.

Even after this recent bankruptcy filing, Aloha pilot leaders were willing to
meet with management to explore every avenue necessary to assist the company
in negotiating with prospective suitors. Management has continued to ignore
every offer.

Founded in 1931, ALPA is the world's largest pilot union, representing more
than 56,000 pilots at 41 airlines in the U.S. and Canada.

The following is the complaint:

Counsel to Plaintiff Air Line Pilots Association, International
IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF HAWAII
ALOHA AIRGROUP, INC. et al., Debtors. Case No. 08-00337 (Chapter 11 Cases)
(Jointly Administered) (Honorable Lloyd King)
ALL CASES AIR LINE PILOTS ASSOCIATION, INTERNATIONAL, Plaintiff, v. ALOHA
AIRLINES, INC., Defendant.
VERIFIED COMPLAINT FOR MAJOR DISPUTE INJUNCTION AND OTHER RELIEF

PRELIMINARY STATEMENT
The Air Line Pilots Association, International ("ALPA") and the pilots of
Aloha Airlines, Inc. ("Aloha" or "the Company") maintain the legal right to
strike Aloha immediately because Aloha has repudiated its collective
bargaining agreement with ALPA. The Norris-La Guardia Act, 29 U.S.C. S101, et
seq. removes jurisdiction from this and any other court to interfere with that
right. The actions of Aloha over the past weeks have unquestionably triggered
a "major dispute" under the Railway Labor Act ("RLA"), 45 U.S.C. SS 151 et
seq.

Notwithstanding the above, ALPA and the Aloha pilots it represents have for
some time offered concessions and tried to reach some mutually acceptable
resolution of the major dispute. Unfortunately, as set forth below, ALPA and
the Aloha pilots have been rebuffed and ignored by Aloha management. ALPA and
the Aloha pilots will continue efforts to resolve the major dispute through an
agreement with Aloha, but their patience --as Aloha manipulates this situation
-- has limits. If no agreement is reached by 12:01 a.m., on Saturday, April
26, 2008, ALPA and the Aloha pilots may strike any or all of Aloha's
operations.

This is an action for immediate injunctive relief to restore respect for the
ALPA-Aloha collective bargaining agreement which Aloha has unilaterally
repudiated as set out below.

Jurisdiction and Venue

1. This is an adversary proceeding brought pursuant to Fed. R. Bankr. P.
7001(7), 7001(9) and 7065, seeking injunctive relief against Defendant's
unlawful abrogation of the collective bargaining agreement between ALPA and
Aloha, pursuant to Section 105 of the Bankruptcy Code, 11 U.S.C. SS 101, et
seq. ( the "Bankruptcy Code"), and the RLA.

2. This Court has jurisdiction over this adversary proceeding pursuant to 28
U.S.C. SS 157, 1331, 1334(b) and 1367.

3. An actual case or controversy has arisen and now exists between ALPA and
the Defendant. The dispute between ALPA and Aloha constitutes a labor dispute
within the meaning of Section 13(a) of the Norris-LaGuardia Act, 29 U.S.C.
S113(a).

4. This proceeding is a "core proceeding" under 28 U.S.C. S 157(b)(2).

5. Venue of the Adversary Proceeding in this district is proper pursuant to 28
U.S.C. SS 1408 and 1409.

Parties 6. ALPA is an unincorporated labor organization with its principal
offices located at 1625 Massachusetts Avenue, Northwest, Washington, DC 20036
and 535 Herndon Parkway, Herndon, VA 20172. ALPA is a "representative" as
defined in Section 1, Sixth of the RLA, 45 U.S.C. S1, Sixth, and is the
exclusive collective bargaining representative of Aloha's pilots.

7. Aloha Airlines is a corporation duly organized and existing under the laws
of the State of Hawaii and having offices and their principal places of
business in Hawaii. Aloha is a "common carrier" by air and engaged in
interstate or foreign commerce under Section 201 of the RLA, 45 U.S.C. S 181
and is subject to the provisions of the RLA.

The ALPA-Aloha Collective Bargaining Agreement and Its Repudiation by Aloha

8. Aloha and ALPA have been parties to successive collective bargaining
agreements for many years. The current collective bargaining agreement was
negotiated during Aloha's first Chapter 11 reorganization which was filed in
December 2003. The CBA became effective on November 29, 2005 and will not
become amendable pursuant to the RLA collective bargaining process until April
30, 2009 (the "CBA"). This Court approved Aloha's entry into the CBA on or
about February 3, 2006. The CBA is a comprehensive agreement that governs
rates of pay, rules and working conditions of Aloha's pilots.

9. On March 20, 2008, Aloha filed for Chapter 11 bankruptcy protection for the
second time. Because the CBA is not amendable at this time, Aloha may not
serve notice of intent to bargain contract modifications and require ALPA to
renegotiate the CBA under the collective bargaining process of the RLA. Even
if Aloha could trigger the statutory collective bargaining process, Aloha
would be required to maintain the contractual status quo until that
negotiating process was exhausted. Although the Bankruptcy Code provides for
the rejection of collective bargaining agreements after strict requirements
are proved in bankruptcy court, see 11 U.S.C. S1113, Aloha has never applied
for such relief. Under Section 1113(f) of the Code, Aloha is required to
adhere to all terms of the CBA unless and until it lawfully rejects the
agreement under the procedures of Section 1113. In any event, under the
express terms of the CBA, Aloha waived its right to file any application under
11 U.S.C. S1113. And even if it had not, S1113 relief cannot be granted on a
retroactive basis.

10. Despite the above, Aloha through its actions and express statements of its
president and chief executive officer David A. Banmiller on the record in open
court repudiated the pilots' CBA. Specifically, Mr. Banmiller boldly and
repeatedly stated in this Bankruptcy 5 Court on April 1, 2008 words to the
effect that "The CBA provides for one thing, but the reality is something
else". Both before and after those statements, Aloha has taken a series of
actions to repudiate the CBA completely, as set out below.

11. Some of the more egregious actions that Aloha has taken in its repudiation
of the CBA are as follows:

A. "Termination" of Pilots: On or about April 7, 2008, in connection with its
precipitous decision to curtain all passenger service, Aloha purported to
"terminate" all but approximately forty (40) of the approximately three
hundred twelve (312) pilots on the Aloha Airlines Pilot Seniority List. The
purported "termination" of these pilots while others remain in service in
Aloha's cargo operation is a nullity. The CBA requires a written "statement of
charges" and a noticed hearing prior to imposition of any discipline. Further,
the CBA requires progressive discipline and "just cause" for termination of
employment. These "termination" letters were actually issued for the sole
purpose of circumventing the furlough provisions set forth in the CBA, which
require, inter alia, that furloughs be conducted in reverse seniority order
and that pilots receive "furlough pay" and related benefits pursuant to a
longevity-based formula.

B. Furlough Out of Seniority Order: The actions by the management of Aloha in
"terminating" all Pilots who were not assigned to the cargo operation as of
March 31, 2008, had the practical effect of completely ignoring and
circumventing the seniority-based process set forth in Section 16 ("Furlough
and Recall") of the CBA. Pilots hired within the past six months remained on
the Company payroll, earning wages and receiving benefits, while the pilot
with the second highest seniority in the entire pilot group who has been
employed at Aloha for 29 years 6 was effectively furloughed by virtue of the
"termination" letter. There is only one seniority list for the entire Aloha
Pilot group -- no differentiation or segmentation is made for passenger vs.
cargo pilots. Pilots have "system-wide" seniority.

C. Recall Out of Seniority Order: In recent days, at the insistence of the
Aloha Master Executive Council of ALPA, the management of Aloha Airlines, Inc.
has scheduled two (2) ground school classes to conduct federally-mandated
training of "senior" Aloha pilots willing to fly in the Aloha cargo operation.
These "senior" pilots were assigned to the passenger operation previously.
However, these "senior" pilots are being recalled to this short (three to six
day) transition training program out of seniority order and without regard to
their relative seniority on the Aloha Pilots Seniority List. Once recalled out
of seniority order, they begin receiving pay and benefits, again circumventing
the seniority provisions of the CBA.

D. Failure to Respect Successorship and Job Security Provisions: Aloha has
refused to confirm to ALPA that it will honor the Job Security and
Successorship provisions of the CBA, and indeed has failed to do so in
agreements with the "stalking horse" purchaser. In these circumstances, those
contractual provisions mandate that the purchaser of Aloha's Air Cargo
Division and/or other flight operations offer employment to pilots from the
Aloha Airlines, Inc. System Seniority List in seniority order and otherwise
abide by the CBA.

E. Failure to Make Retirement Plan Contributions and Maintain Benefits: Upon
information and belief, the Company has failed to make Retirement Plan
contributions and has failed to maintain benefits as follows, including for
employees for the periods they have worked or will continue to work
post-petition.

(1) Company retirement plan contributions to Equity Annuity Plan (EAP), per
CBA Document R12:

-- Aloha failed to make contributions to EAP C-Plan accounts on April 7, 2008,
equal to 11% of earnings of all pilots for March 2008 flying. Based on this
failure, ALPA reasonably believes that Aloha will fail to make the following
contributions:
-- Contributions to EAP B-Plan accounts on April 20, 2008, equal to 7% of
earnings of all pilots for April 2008 flying, and each month thereafter.
-- Contributions to EAP C-Plan accounts on or about May 7, 2008 and on or
about the 7th day of each month thereafter, equal to 11% of pilot true-up
earnings for April 2008 flying, and each month thereafter.
-- Contributions to EAP B-Plan accounts on or about May 20, 2008, and on or
about the 20th day of each month thereafter, equal to 7% of pilot true-up
earnings for March 2008 flying.
-- Contributions to EAP C-Plan accounts on or about May 7, 2008, equal to 11%
of earnings of pilots for April 2008 flying in cargo operation.
-- Contributions to EAP B-Plan accounts on or about May 20, 2008, equal to 7%
of earnings of pilots for April 2008 flying in cargo operation.

(2) Termination of coverage on March 31, 2008 under some or all of the
following employee benefit plans under the CBA, with respect to pilots still
flying for the Company after March 31, 2008 in the cargo operation:

-- Life Insurance - both Company-paid and optional pilot-paid, per CBA Section
29.A. and 29.B.
-- AD&D Insurance - both Company-paid and optional pilot-paid, per CBA Section
29.A.
-- Loss of License Disability Insurance Plan, per CBA Section 29.N. 8
-- Aloha Airlines, Inc. Disability Plan, per CBA Document R12.
-- Flexible Spending Account (FSA) Plan, per CBA Section 29.P.
-- Long Term Care Plan, per CBA Section 29.D.5 and 29.D.6.

(3) Termination of coverage on March 31, 2008 under the following employee
benefit plans under the CBA, with respect to pilots who should have been
furloughed, not terminated, on March 31, 2008:

-- Per Section 29.I., medical/vision/pharmacy coverage is required to continue
for 60 days to furloughed pilots. Furloughed pilots then have option to
continue for 1 year thereafter by paying same rate Company pays for active
employees.
-- Per Section 29.I., dental coverage is required to continue for 60 days to
furloughed pilots. Furloughed pilots then have option to continue for 1 year
thereafter by paying same rate Company pays for active employees.
-- Per Section 29.I., life insurance coverage is required to continue for 60
days to furloughed pilots. Furloughed pilots then have option to continue for
1 year thereafter by paying same rate Company pays for active employees.
-- AD&D Insurance - both Company-paid and optional pilot-paid, per CBA Section
29.A.
-- Loss of License Disability Insurance Plan, per CBA Section 29.N.
-- Aloha Airlines, Inc. Pilots Disability Plan, per CBA Document R12.
-- Aloha Flexible Spending Account (FSA) Plan - Pilots, per CBA Section 29.P.
-- Long Term Care Plan, per CBA Section 29.D.5 and 29.D.6.

(4) Terminating, rather than furloughing pilots, deprived such pilots who are
eligible for early retirement from giving the required 60-day advance notice
of early retirement, pursuant to CBA Document R.9. Depriving such pilots of
the ability to retire early deprived them of the opportunity to pay for
retiree health care by using unused sick leave hours accrued as of the date of
retirement, per CBA Section 29.E.

(5) Termination of Loss of License Disability Insurance Plan benefit payments
to disabled pilots, per CBA Section 29.N.

(6) Anticipated failure to make required monthly contribution to Voluntary
Employees Beneficiary Association (VEBA) Trust established under the Aloha
Airlines, Inc. Pilots Disability Plan, per CBA Section 29.N.

(7) Termination of various benefits for pilots' survivors, per CBA Section 29
and CBA R-Documents.

(8) Termination of various benefits to retired pilots, per CBA Section 29 and
CBA RDocuments.

F. Failure to Provide Continuing Pay and Benefits Including Medical Coverage,
Upon Furlough: Following the de facto furlough triggered by the shutdown of
the passenger operation and the issuance of the "termination" letters on or
about April 7, 2008, Aloha has failed and refused to provide these furloughed
pilots with the contractually-mandated pay and benefits (air carrier pass
privileges, medical coverage, etc.) for periods of time as of March 31, 2008,
without any warning or notice. Whatever Aloha's position on its ability to
make payments, no such issues are even implicated by Aloha's repudiation of
its obligation to provide 10 the contractually-mandated airline pass
privileges. This repudiation makes it impossible, as a practical matter, for
many newly-unemployed pilots to seek alternate employment with Mainland-based
(or even Hawaii-based) air carriers, as they are now forced to purchase
airline tickets for interviews and job fairs at a time when their finances
have been unexpectedly put in turmoil. Further, by terminating senior pilots,
it has deprived such pilots of the ability to use a pass to travel to
training. Furlough pass privileges were negotiated in good faith for precisely
this reason.

G. Vacation Payout: The CBA provides that any terminated or furloughed pilot
shall be paid his/her accrued and "banked" vacation. Aloha has refused to pay
affected pilots their accrued and banked vacation.

COUNT 1 (VIOLATION OF THE RLA'S COLLECTIVE BARGAINING PROVISIONS)

12. The allegations contained in paragraphs 1 through 11 above are
incorporated by reference as if fully set forth in this paragraph.

13. By its conduct described in paragraphs 1 through 12 above, Aloha has
violated and continues to violate its obligations to make every reasonable
effort to make and maintain status quo working conditions of the Aloha pilots
pursuant to RLA Section 2, First and Seventh, and Sections 5 and 6 of the RLA.
45 U.S.C. SS152, First, Seventh, Fifth, Sixth.

14. Unless enjoined, Aloha will continue the above-described unlawful
unilateral course of conduct. ALPA and the Aloha pilots will continue to
suffer irreparable injury from Aloha's unlawfully conduct.

COUNT II (VIOLATION OF RLA ORGANIZATIONAL PROTECTIONS)

15. The allegations contained in paragraphs 1 through 14 above are
incorporated by reference as if fully set forth herein.

16. Aloha is obligated under Section 2 First, Third, Fourth and Eighth of the
RLA, 45 U.S.C. S 152, First, Third, Fourth and Eighth, to refrain from
interfering with, undermining, subverting or destroying ALPA's status and
effectiveness as the collective bargaining representative of the Aloha pilots.

17. Aloha, by refusing to bargain with ALPA and by unilaterally and materially
modifying pilot compensation, work rules and benefits, has intentionally
interfered with, undermined and subverted ALPA's status and effectiveness as
collective bargaining 12 representative and denied Aloha pilots their legal
rights, in violation of Section 2 First, Third, Fourth and Eighth of the RLA,
45 U.S.C. S 152, First, Third, Fourth and Eighth.

18. Aloha's course of conduct, as described above, is destructive of the
representative standing and legitimate effectiveness of ALPA as the exclusive
collective bargaining representative of Aloha's pilots and of the rights of
the Aloha pilots to organize and bargain collectively through their designated
representative, without interference, influence or coercion by Aloha, in
violation of Section 2 First, Third, Fourth and Eighth of the RLA, 45 U.S.C. S
152, First, Third, Fourth and Eighth.

19. Aloha, by its course of conduct, as described above, has undertaken to
interfere with, undermine, subvert and destroy ALPA's status and effectiveness
as the collective bargaining representative of the Aloha pilots, in violation
of Section 2 First, Third, Fourth and Eighth of the RLA, 45 U.S.C. S 152,
First, Third, Fourth and Eighth. 20. Unless enjoined, Aloha will continue the
above-described unlawful unilateral course of conduct. ALPA and the Aloha
pilots it represents will continue to suffer irreparable injury from Aloha's
unlawful conduct.

PRAYER FOR RELIEF Wherefore, plaintiff ALPA respectfully requests that this
Court issue:

1. Injunctive relief:

a. Restraining and enjoining defendant Aloha, its directors, officers, agents
and employees, from engaging in any further self-help;
b. Directing and enjoining defendant, its directors, officers, agents and
employees, to exert every reasonable effort to make and maintain agreements
with ALPA concerning the rates of pay, rules and working conditions of
defendant's pilots;
c. Enjoining, ordering, directing and requiring Aloha, its directors,
officers, agents and employees, to cease and desist, on a going-forward basis,
from unilaterally implementing, without reaching prior agreement with ALPA,
programs unless the RLA's mandatory bargaining and mediation procedures are
exhausted with respect thereto; and
d. Enjoining, ordering, directing and requiring Aloha, its directors,
officers, agents and employees, to refrain from interfering with, undermining,
subverting or destroying ALPA's status and effectiveness as the collective
bargaining representative of the Aloha pilots.

2. A judgment declaring the rights of the parties and awarding additional
relief, as determined by the Court, including monetary relief, as may be
appropriate to fully remedy Aloha's violations of the RLA and its infringement
of the rights of the Aloha pilots as represented by ALPA.

3. Such other and further relief as may seem just and proper to this Court,
including damages in such amounts as are established, together with the costs
and expenses of this proceeding.

SOURCE Air Line Pilots Association, International

James Linsey, +1-917-373-0872, or Kimberly Seitz, +1-703-609-1650, both of
ALPA