Aloha Airgroup files for bankruptcy protection
Fri Mar 21, 2008 1:26pm
NEW YORK, March 21 (Reuters) - Aloha Airgroup Inc, the parent of Aloha Airlines Inc, has filed for bankruptcy protection and blamed "predatory pricing" by competitor Mesa Airlines for its troubles.
The company, which employs 3,500, had emerged from bankruptcy protection about two years ago.
Hawaii-based Aloha on Thursday filed for Chapter 11 bankruptcy protection, asking the U.S. Bankruptcy Court to allow it to continue to operate and to approve its financing arrangement with its principal working capital lender, General Motors Acceptance Corp.
GMAC is owned by private equity firm Cerberus Capital Management [CBS.UL] and General Motors Corp (GM.N: Quote, Profile, Research).
Aloha cited its inability to generate sufficient revenues from its inter-island passenger business due to predatory pricing by Mesa Air Group's (MESA.O: Quote, Profile, Research) go! airline.
"In the highly competitive inter-island market, Aloha was forced to match go!'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel," the company said in a statement.
Phoenix-based Mesa Air Group launched its go! airline inter-island Hawaiian service in June 2006. A spokesman for Mesa could not be reached immediately for comment. (Reporting by Ilaina Jonas; Editing by Leslie Adler)
Fri Mar 21, 2008 1:26pm
NEW YORK, March 21 (Reuters) - Aloha Airgroup Inc, the parent of Aloha Airlines Inc, has filed for bankruptcy protection and blamed "predatory pricing" by competitor Mesa Airlines for its troubles.
The company, which employs 3,500, had emerged from bankruptcy protection about two years ago.
Hawaii-based Aloha on Thursday filed for Chapter 11 bankruptcy protection, asking the U.S. Bankruptcy Court to allow it to continue to operate and to approve its financing arrangement with its principal working capital lender, General Motors Acceptance Corp.
GMAC is owned by private equity firm Cerberus Capital Management [CBS.UL] and General Motors Corp (GM.N: Quote, Profile, Research).
Aloha cited its inability to generate sufficient revenues from its inter-island passenger business due to predatory pricing by Mesa Air Group's (MESA.O: Quote, Profile, Research) go! airline.
"In the highly competitive inter-island market, Aloha was forced to match go!'s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel," the company said in a statement.
Phoenix-based Mesa Air Group launched its go! airline inter-island Hawaiian service in June 2006. A spokesman for Mesa could not be reached immediately for comment. (Reporting by Ilaina Jonas; Editing by Leslie Adler)
