Glenn Zander, 57, will move to Georgia and commute to Hawai'i once or twice a month to fulfill his role in the newly created position of vice chairman of the board of Aloha Airgroup Inc., Aloha Airlines' privately held parent company.

"It was a very difficult decision," Zander said. "I have a situation with my wife. At the same time, I have a certain dedication to Aloha."

Zander said he also plans to continue serving on the boards of several local organizations.

Han H. "Sonny" Ching, Aloha Airgroup's chairman, said he hopes to find a permanent replacement by the end of the year. Brenda F. Cutwright, Aloha's executive vice president and chief operating officer, has been named acting president and chief executive officer.

Ching cited Zander's "extraordinary achievements and outstanding leadership and vision over the past 10 years. Additionally, we are pleased that his ongoing participation in strategic matters will assist us as Aloha moves forward in these challenging times."

Under Zander, Aloha has doubled its revenue to nearly $500 million per year. The company has expanded from a primarily interisland carrier to one with regular service to North America and the Central and South Pacific.

Aloha and Hawaiian Airlines, the Islands' largest airline, attempted a merger in 2001 that fell apart. Since then, as other airlines have cut back on amenities, Aloha has taken a different focus: For its longer flights, if offers free mai tais, chocolate chip cookies baked on the plane and cold milk, along with coach-class meals prepared with the help of celebrity chef Alan Wong.

But just like Hawaiian, Aloha since Sept. 11 has more than doubled the cost of interisland fares, causing hundreds of people to miss family funerals, weddings and other special events in their lives.

"This has been a very difficult period for us," Zander said. "We feel very strongly the need to provide interisland service that works for the community."

Aloha has since experimented with a series of changes to cut costs, such as eliminating first-class interisland seats and offering coupon sales that roll back prices to preiSept. 11 levels.

"People normally view business folks as not the most sympathetic," Zander said. "In fact, we are extremely sympathetic. We really are trying to find a way to make interisland travel affordable."

In June, the Bureau of Transportation Statistics reported that Aloha lost nearly $7.2 million in the first three months of this year, which the company blamed in part on rising fuel costs. The results of Aloha's second-quarter financial performance are expected to be announced in the next few days.

Until his last day as president and CEO, Zander said he expects to be a busy man.

"Anybody who becomes a CEO in the airline business faces enormous challenges," Zander said. " ... I'll be hard at it every day. There are lots and lots of things to do here."