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The Honolulu Advertiser
Updated at 1:29 p.m., Thursday, April 24, 2008

Judge OKs $2.1M sale of Aloha Airlines' contract services unit

Advertiser Staff

A federal judge today approved the sale of Aloha Airlines' contract services division to a Los Angeles-based company.

U.S. Bankruptcy Judge Randall Newsome authorized the $2.05 million sale to Pacific Air Cargo. The deal is expected to close on May 5.

The profitable aviation services unit, which employs about 1,100 workers, handles customer service, baggage service, ticket agents and ramp agents for United Airlines, Japan Airlines and other carriers that serve Hawai'i.

Aloha was the state's second largest carrier before it shutdown its passenger services operations last month and laid off 1,900 workers.