"The loan guarantee program served its purpose to support Aloha over the past two years when credit was not otherwise reasonably available and the board is pleased that the company has secured private financing and is now proceeding toward a successful reorganization and exit from bankruptcy," said Mark Dayton, the board's executive director.

David Banmiller, Aloha's president and chief executive officer, said, "This financing commitment from our new lenders is a significant step in our goal to quickly exit bankruptcy and represents a vote of confidence in our restructuring business plan."

Banmiller commended Aloha employees yesterday for "assisting the company in its efforts to rebound from the industry-wide problems that have plagued all carriers over the past four years. With the continued support of our employees, lenders and business partners, we are sure to succeed in reorganizing and emerging as a stronger airline."