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The Honolulu Advertiser
Posted on: Wednesday, April 9, 2008

Without pilots, 7 local cargo flights canceled

 •  Mesa Air looks to sell new stock

By Rick Daysog
Advertiser Staff Writer

Aloha Airlines said it canceled seven of its 16 interisland round-trip cargo flights Monday night due to pilots' absence.

Aloha is trying to sell its profitable cargo division after the carrier abruptly shut down its passenger service last week and laid off 1,900 employees. Aloha said its pilots union has threatened to disrupt the cargo division due to a dispute over which pilots get to fly Aloha's cargo routes.

Aloha said all 10 of its Monday daytime cargo flights flew as scheduled.

Aloha attorney Sheldon Kline said the cancellations are a "historic high" for Aloha but he added there's no evidence to show that the Air Line Pilots Association, which represents 300 Aloha pilots, orchestrated the move.

"It's highly unusual to have seven in one night," Kline said.

John Linsey, ALPA's attorney, declined comment on the absences but in the past, the union denied that it was attempting a work stoppage and said it supported the company's efforts to sell its cargo division.

Aloha is the largest air cargo company in Hawai'i with about 85 percent of the market. The company flies roughly 30 cargo flights a day and employs nearly 400 people, including 41 pilots.

Aloha said it has received inquiries from about 20 interested parties for its cargo division.

They include billionaire David Murdock's Castle & Cooke Aviation, which provides jet fuel, aircraft hangar, office and shop space for private jets, and Kahala Capital LLC, which is led by local investor Bradley Smith and Aloha director Richard Ing.

The leading bidder is Seattle-based Saltchuk Resources Inc., the owner of Young Brothers/ Hawaiian Tug & Barge, which signed a letter of intent last month to acquire the cargo unit for $13 million.

Aloha's chief lender, GMAC Commercial Finance LLC, said it will provide $3 million to finance the operations of the company's cargo division. GMAC previously said it would not provide the funding unless the pilots union and the company resolved the labor dispute. The airline said talks with the pilots union continue.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.