Jump to content

Aloha Airlines

From Alfawiki
Aloha Airlines
Company typePublic (formerly family-controlled)
IndustryAirline
PredecessorTrans-Pacific Airlines
Founded1946
FounderRuddy F. Tongg Sr.
Defunct2008
FateCeased operations; assets sold off
Headquarters
Honolulu
,
United States
Area served
Hawaii, mainland United States, Pacific Islands
Key people
Hung Wo Ching (CEO 1958), Marc Bilbao (CEO during bankruptcy), Ronald Burkle (investor), Gordon Bethune (chairman 2006)
ProductsPassenger and cargo airline services
Number of employees
~3,500 (at closure)
ParentVarious investors including Yucaipa Companies and Aloha Aviation Investment Group (post-2006)

Aloha Airlines was a domestic carrier within the United States that operated passenger services exclusively in Hawaii from 1946 until ceasing operations in 2008. Its main office was located in Honolulu, Hawaii, with Honolulu International Airport (currently known as Daniel K. Inouye International Airport) serving as its primary hub.

Propeller period

Originally established as the charter airline Trans-Pacific Airlines by publisher Ruddy F. Tongg Sr. to rival Hawaiian Airlines, the airline commenced flights on July 26, 1946, utilizing a surplus Douglas C-47 aircraft to connect Honolulu, Maui, and Hilo. The airline’s inception followed Tongg and his associates being displaced from Hawaiian Airlines flights. Employing local personnel, the company adopted the motto "The People's Airline" and quickly became known colloquially as "The Aloha Airline." It received authorization for scheduled services in 1949, launching its first scheduled flight on June 6 of that year.

By 1952, the airline achieved its inaugural annual profit, approximately $36,000. In 1950, it rebranded to TPA-The Aloha Airline to attract more tourists, which led Hawaiian Airlines to upgrade its fleet to Convair 340 aircraft. Under CEO Hung Wo Ching’s leadership in 1958, the airline was renamed Aloha Airlines. The introduction of Fairchild F-27 turboprop aircraft occurred in 1959, coinciding with the company’s transition to a public company through an initial public offering.

Jet engine period

On January 3, 1961, Aloha retired its final DC-3 aircraft, becoming the second U.S. carrier to operate an entirely turbine-powered fleet. In 1963, it expanded its turboprop fleet by acquiring Vickers Viscount aircraft from Austrian and Northeast Airlines. By October 1964, all inter-island flights were conducted with turboprops, and the airline promoted itself as providing "Hawaii's Only All Jet Power Service Between The Islands." The shift toward jet aircraft began in April 1966 with the arrival of British Aircraft Corporation BAC One-Eleven twin jets. The last Fairchild F-27 was phased out by June 1967.

Confronted with competition from Hawaiian Airlines’ larger Douglas DC-9-30 jets and operational difficulties at Kona International Airport, Aloha placed orders for two Boeing 737-200s in 1968. These aircraft, nicknamed "Funbirds," entered service in March 1969, boosting passenger capacity significantly while escalating rivalry and stimulating merger discussions between the two airlines in 1970, 1988, and 2001. By October 1971, Aloha divested its remaining Viscount turboprops and fully transitioned to a jet-only fleet.

To foster customer loyalty, Aloha introduced the AlohaPass frequent flyer program in 1983. In 1984, it leased a McDonnell Douglas DC-10-30 and launched long-distance routes connecting Honolulu with Guam and Taipei under the brand Aloha Pacific. This initiative was unable to compete effectively against Continental Airlines and was discontinued in January 1985. Later that year, the airline acquired Quick-Change Boeing 737s capable of switching between passenger and cargo roles for overnight freight services. In February 1986, Aloha became a pioneer by operating ETOPS-certified Boeing 737-200 flights between Honolulu and Kiritimati (Christmas Island).

Toward the end of 1986, founders Ching and vice-chairman Sheridan Ing announced intentions to privatize the company after fending off hostile takeover attempts. The airline remained family-controlled until it emerged from bankruptcy protection in 2006 when new investors such as Yucaipa Companies and Aloha Aviation Investment Group obtained ownership stakes. In 1987, Aloha expanded through acquiring Princeville Airways, which was renamed Aloha IslandAir (later Island Air); this subsidiary was sold in 2003 to Gavarnie Holding and became independent.

On February 14, 2000, Aloha commenced service to mainland U.S. destinations using ETOPS-certified Boeing 737-700 jets departing from Hawaiian airports to Oakland, California. The network later grew to include routes to Orange County, San Diego, Sacramento, Reno, Las Vegas, Vancouver, and Burbank (now Bob Hope Airport).

Aloha’s inter-island flights covered distances ranging between 62 and 216 miles, averaging approximately 133 miles per journey. From late 1989 until mid-2006, it shared certain routes through codeshare agreements with partner Island Air. Customers accrued mileage credits via either the AlohaPass program or United Airlines' Mileage Plus system.

Economic difficulties

In the early 2000s, Aloha Airlines found itself struggling due to escalating expenses and Japan's prolonged economic slowdown, challenges that were intensified by the aftermath of the September 11 attacks, the 2003 SARS outbreak, and rapidly increasing fuel prices. On December 30, 2004, the airline sought protection under Chapter 11 bankruptcy. Under the leadership of Marc Bilbao from Giuliani Partners, Aloha was sold to an investment group led by Ronald Burkle, who also arranged a $65 million loan. Following a renegotiation of CEO David Banmiller's salary terms, the airline successfully emerged from bankruptcy on February 17, 2006. Later that year, on August 30, Gordon Bethune was appointed chairman.

Aloha faced continual financial losses driven by a prolonged fare war with rival go! (operated by Mesa Airlines) and surging fuel expenses, prompting another Chapter 11 filing on March 20, 2008. Within ten days, all scheduled passenger flights were halted, resulting in layoffs of approximately 1,900 employees out of a workforce of about 3,500. Although Hawaii Governor Linda Lingle requested a postponement of the shutdown and urged restoration of service, Bankruptcy Judge Lloyd King declined to grant intervention.

Following the cessation of passenger services, Aloha and its creditors, represented by Fieldstone Aviation LLC, aimed to auction off its profitable cargo and contract services units. In 2008, Pacific Air Cargo purchased the ground handling segment known as Aloha Contract Services for $2.2 million and continued operations under that name.

Fieldstone sought buyers for the cargo division as well; potential purchasers included Saltchuk Resources from Seattle, Castle & Cooke Aviation based in California, and Kahala Capital from Hawaii. However, disagreements between these bidders and Aloha’s main lender GMAC Commercial Finance led to withdrawal of bids and suspension of funding by GMAC, which forced the cargo operations to shut down. Consequently, the board converted the airline’s Chapter 11 reorganization into Chapter 7 liquidation.

At the encouragement of U.S. Senator Daniel Inouye, Saltchuk renewed its offer and agreed to acquire the cargo division for $10.5 million. The federal bankruptcy court approved this transaction on May 12, 2008, with closing anticipated soon afterward.

Saltchuk Resources already had established operations in Hawaii through subsidiaries such as Young Brothers/Hawaiian Tug & Barge and Maui Petroleum. The company also owns Northern Air Cargo in Alaska. To manage Aloha Air Cargo, Saltchuk created a new subsidiary named Aeko Kula Inc..

Brand name and intellectual assets

In January 2011, Yucaipa Companies—based in Los Angeles and former majority owner of Aloha—purchased the airline’s name and intellectual property for $1.5 million. This acquisition included a stipulation preventing resale to Mesa Air Group, parent company of go! Mokulele. In 2009, Mesa had attempted to rebrand its go! aircraft under the Aloha name; however, a federal Bankruptcy Judge blocked this effort following opposition from former Aloha employees who blamed Mesa for the airline’s downfall.

Destinations

Prior to halting passenger operations on March 31, 2008, Aloha Airlines served the following locations:

Template:ASM

Template:CAN

Template:COK

Template:KIR

Template:MHL

Midway Atoll

Template:USA

Codeshare partnerships

Aloha Airlines engaged in codeshare collaborations with the following carriers:

Fleet composition at closure

When Aloha Airlines ended its operations, its entire fleet was composed exclusively of 737 models:

Aloha Airlines fleet
Aircraft Quantity Seating Capacity Service Routes Remarks
F Y Total
Boeing 737-200 13 — 127 127 Hawaiian Inter-Island routes
Boeing 737-700 8 12 112 124 Mainland United States routes
Boeing 737-800 1 12 150 162 Mainland US
(mainly Kahului to Sacramento) 		Leased from Transavia
Total 22

Fleet age and development

By March 2008, the average age of Aloha Airlines’ aircraft was 18.2 years.

Formerly operated aircraft

In earlier periods, Aloha Airlines utilized Boeing 737-300 and 737-400 jets for inter-island travel, and briefly operated two Boeing 737-100 planes during the mid-1970s. Their historic fleet also featured turboprop models such as the Douglas C-47, Fairchild F-27, and Vickers Viscount. The airline’s initial jet aircraft was the British Aircraft Corporation BAC One-Eleven. Additionally, its subsidiary, Aloha Pacific, flew a wide-body McDonnell Douglas DC-10-30 jetliner.

Retired fleet before shutdown

Retired aircraft of Aloha Airlines
Aircraft Model Quantity Year Introduced Year Retired Additional Information
BAC One-Eleven Series 200AU 3 1966 1969 Transferred to Mohawk Airlines
Boeing 737-100 2 1973 1978 Transferred to Air California
Boeing 737-300 3 1988 1993
Boeing 737-300QC 2 1997 1997 Transferred to America West Airlines
Boeing 737-400 2 1992 1996
Douglas C-47 Skytrain 9 1946 1965
Fairchild F-27 6 1959 1967
McDonnell Douglas DC-10-30 1 1984 1985 Leased from Continental Airlines
Vickers Viscount 745D 4 1963 1971

Accidents and incidents

  • On June 27, 1969, a ground collision occurred at Honolulu International Airport involving a Vickers Viscount and a Hawaiian Airlines Douglas DC-9, resulting in the total loss of the Viscount.
  • On August 8, 1971, another Vickers Viscount was destroyed by fire during landing at Honolulu International Airport.
  • On April 28, 1988, catastrophic explosive decompression struck Aloha Airlines Flight 243, a Boeing 737-200 traveling from Hilo to Honolulu. Despite severe damage, the aircraft managed to land safely at Kahului Airport. Tragically, one flight attendant lost her life, while multiple passengers and crew sustained injuries. The cause was determined to be metal fatigue, marking a pivotal moment for aviation safety standards and maintenance procedures. This event inspired the 1990 motion picture Miracle Landing.

See also

References


External links

Retrieved from "https://www.alfawiki.org/index.php?title=Aloha_Airlines&oldid=12011"