To say that Aloha Airlines is struggling is to say that beer is an acquired taste. Both take a little time to get used to, but too much of either leaves you feeling worse off.
In a competitive inter island airline market, Aloha can’t seem to do anything but spend money. They’re losing it faster than Ed Case moves toward political oblivion. Ed who? See?
I sympathize with Aloha’s investors and employees. It can’t be fun watching the airline spend your hard-earned investment money faster than it can be replaced. It can’t be fun working for an airline that claims to be the On Time Airline but can’t pay bills on time.
Aloha blames little go! airlines for their financial woes. I blame common sense. Aloha’s investors have the common sense to recognize that there’s something else amiss besides go!’s lower-than-cost competition. After all, Hawaiian Airlines didn’t file for bankruptcy. What is Hawaiian doing that Aloha can’t do?
The U.S. is heading into what appears to be a full-on recession. Cruise ships are leaving the islands. That does not bode well for the tourist industry in Hawaii, and can’t make for an attractive future for Aloha Airlines.
There are plans afoot for the state to bail out Aloha however possible; tax reductions, loan guarantees, a resolution of support, or whatever. The loss of a few thousand jobs as a large local airline goes bust will resonate far longer than the news headlines. Fortunately for Aloha, politicians have short memories.
Remember Hamakua Sugar? How’s that bail out plan working?
Sometimes the road less traveled is less traveled for a reason. Sometimes the competition is just better. Either do what the competition does or find something else to do. Aloha couldn’t do either and will end up closing the doors unless a suitable sucker investor is found. Perhaps Governor Lingle would consider becoming Aloha’s savior and come up with a plan for the state to buy Aloha. Why not? She wants the state to get into the hotel and resort business.
What’s wrong with a state owned airline?
HawaiiBlogger's Comment Policy: Keep your comment on topic, relevant, worthy, and funny. Or, pick any three. Be pleasant, helpful, and only use your real name. Comments are moderated and will not appear immediately (* required).