It looks like oil has taken its latest victim in the airline industry: Aloha Airlines just announced that they’re applying for Chapter 11 bankruptcy. Citing outrageous oil prices and “predatory” competition of inter-island carrier “go!”, the Hawaiian airline is now seeking financing to keep operations and logistics going while they reorganize.
I’m not too sure what the history is between Aloha Airlines and go!, but Aloha definitely isn’t very happy. Said David Banmiller, their CEO on the affair:
“It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action”
In case you were already booked on Aloha Airlines, operations are supposed to continue for the near term. If the bankruptcy court ends up pulling the plug though, things are going to grind to a halt pretty quick, so be ready to cash in your chips and look into an alternative airline. Luckily, there is plenty of competition on the inter-island routes.
Check out the website’s FAQ on their chapter 11 filing here.