Posted on: Friday, December 31, 2004
Bankruptcy won't affect safety, number of flights
| • | Aloha Airlines filing doesn't faze fliers |
| • | Aloha Airlines files for Chapter 11 bankruptcy |
| • | Aloha Airlines drops commuter pass option |
| • | Aloha Airlines: From beginning to bankruptcy |
By Deborah Adamson
Advertiser Staff Writer
Q: Will tickets, coupons and reservations for future Aloha flights be honored throughout the reorganization process?
A: Yes. All tickets, coupons and reservations should be honored and customers should notice no change to flight operations or customer service programs as a result of the filing. A: No. Program members will continue to earn and redeem miles on Aloha, United Airlines and Island Air. All mileage earned to date will be retained. Other products and services, such as the Ali'i Loyalty Program and Ali'i Club airport lounges, will remain in place. In addition, transactions made with the Aloha AirAwards Card still will earn bonus miles.
A: When a company struggles under crippling debt but still wants to stay in business, it can file for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This type of bankruptcy gives the company some breathing room to recover, putting creditors temporarily at bay. Management continues to run daily operations but major corporate decisions must be approved by a bankruptcy court. Secured creditors or lenders — most often banks — are paid first, followed by unsecured creditors such as bondholders and suppliers. Shareholders have the last claim on assets and may not get anything if the others are not fully repaid. To emerge from bankruptcy and return to profitability, the company crafts a reorganization plan to be approved by the bankruptcy court. After Chapter 11, part or all of a company's debt may be canceled and creditors get ownership of the newly organized firm.
A: To cut costs in light of higher fuel and operating expenses. Through Chapter 11, the airline can restructure its debt and obligations to emerge as a stronger carrier. Aloha hopes to bring its aircraft lease rates and expenses more in line with those of competitors who have already benefited from a bankruptcy filing. The goal is to emerge with a lower cost structure that will enable Aloha to be more competitive in an industry dominated by low-cost carriers. A: No estimated date yet, but Aloha hopes to emerge from bankruptcy as soon as possible. A: Hawaiian Airlines, United Airlines, ATA Airlines and US Airways. A: Aloha will not be cutting back on flights — including its air freight cargo service — and the bankruptcy filing will not affect safety measures. A: Yes. There is no change to Aloha's refund and ticketing policies. Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
Q: Does the Chapter 11 filing affect the AlohaPass frequent- flier program?
Q: What is Chapter 11 bankruptcy?
Q: Why is Aloha filing for Chapter 11?
Q: When will Aloha emerge from Chapter 11?
Q: What other airlines are under Chapter 11 court protection?
Q: Will this mean a reduction in flights? How about safety?
Q: Can customers request a refund for unused and unrestricted refundable tickets?
