It started in 1946 as Trans-Pacific Airlines. It survived bankruptcy, at least two failed merger attempts with rival Hawaiian Airlines and several turf challenges from low-cost interisland carriers.

And today Aloha Airlines celebrates its 60th anniversary, facing what may be its stiffest challenge yet.

Months after it emerged from bankruptcy, Aloha ran up against new competition from Phoenix-based Mesa Air Group, whose interisland carrier go! launched in June with fares one-way as low as $39.

Unlike previous competitors such as Discovery Airways, Mahalo Air and Mid-Pacific Airlines that eventually folded, go! is well-financed, and its parent company says it is committed to Hawai'i for the long haul.

The new competition comes as fuel costs have nearly doubled over the past three years.

But the resilience displayed by Aloha in its first 60 years will serve it well, the company said.

"We ... are far more competitive than we were two years ago," said David Banmiller, Aloha's chief executive officer. "We're up to the challenge."

During a 14-month bankruptcy that ended in February, Aloha shed about $75 million in annual costs and eliminated $65 million in debt while preserving nearly all of its 3,400 jobs.

Aloha also attracted new ownership — California billionaire Ron Burkle's Yucaipa Cos. and former professional football star Willie Gault — who have invested about $100 million in the airline.

Banmiller said yesterday that the airline will focus on the quality of its customer service and its on-time performance.

Aloha, the state's second largest airline, filed for bankruptcy in December 2004 as fuel costs began to soar.

The bankruptcy came after Aloha and Hawaiian aborted their attempt to merge in 2002.

To celebrate its 60th anniversary, Aloha is giving away a certificate for free travel to all paying passengers who fly today. The free certificate is good for a roundtrip ticket to the Neighbor Islands on a customer's birthday in 2007.

To redeem the free tickets, customers must mail in their July 26 boarding pass stub, along with proof of their birth date.

"An airline doesn't enjoy the privilege of providing continuous service for 60 years without the wholehearted backing of the communities it serves," said Banmiller. "So we're thanking the people who fly us on our birthday by celebrating their birthday."

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.