April 3, 2008
Aloha Airlines Chapter 11 Case
In the Aloha bankruptcy case, filed March 20 in Hawaii, Aloha reported the following losses: For the month of January, 2008, a net loss of $11 million, on operating revenues of $35 million. For the calendar year 2007, a net loss of $81 million, on operating revenues of $407 million. For 2006, a net loss of $46 million on operating revenues of $416 million. For 2005, a net loss of $41.2 million, on operating revenues of approximately $455 million.
Aloha has 27 airplanes and 3500 employees. It reports $216 million in assets and $285 million in liabilities of which $162 million is secured. Aloha asserts that the reason for the current filing is increased competition especially from go! Airlines. Aloha sued Mesa Air Group under various predator competition theories and trial is set for later this year.
I am a little surprised the case was filed in Hawaii but that is where Aloha is located and that is where the prior case was filed. Compare Sharper Image located in San Francisco but filed in Delaware. Aloha's counsel is a sole practitioner, David Farmer who is supported - backed up - by a Florida firm.
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