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The Honolulu Advertiser
Posted on: Tuesday, April 29, 2008

It's unclear how cargo void will be filled

Photo gallery: Aloha cargo service ends

Advertiser Staff

"Since Aloha first announced it was filing for bankruptcy, the state has been in discussions with cargo operators to identify other alternatives for the transportation of goods between the islands. Many of the shippers that use Aloha cargo service have made contingency plans with other air or sea carriers."

GOV. LINDA LINGLE

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The shutdown of Hawai'i's largest interisland air-cargo carrier has left the state scrambling to fill a huge void.

Aloha Airlines' cargo operation accounted for about 85 percent of all goods shipped by air between the islands. Barge service by Young Brothers and Hawaii Superferry, and Hawaiian Airlines are now left as primary sources to fill the void.

Just hours after learning about Aloha, details on how the remaining companies might contribute remained unclear.

"Like many others in the community, Hawaii Superferry will do what it can to step up to help ensure that interisland commerce continues with as little disruption as possible for Hawai'i's businesses and residents," Hawaii Superferry said in a written statement.

Keoni Wagner, Hawaiian Airlines vice president of public affairs, estimated his company's current interisland cargo business at 8 percent to 10 percent but had no comment on whether it plans to expand.

"Hawaiian will continue to do all it can to help interisland cargo shippers with our expanded operations," the airline said in a written statement last night. "Without cargo-dedicated aircraft, however, that will amount to only a small percentage of the total market. We will make every adjustment possible to increase our cargo carrying capacity, but won't be able to fill the void with air cargo as we did with passengers."

Government officials said they were concerned about employees as well as cargo customers.

"This is a very unfortunate situation. I am concerned for both the employees of Aloha Airlines Cargo as well as for the many small businesses that will be impacted," said Maui County Mayor Charmaine Tavares in a statement. "Many small businesses, such as farmers with perishable cargo, rely on transporting their goods via air carriers, and the extent of the impact to the Neighbor Islands will need to be examined."

Gov. Linda Lingle, who said she had been in contact with Tavares as well as Big Island Mayor Harry Kim and Kaua'i Mayor Bryan Baptiste, said she was disappointed that the cargo operations could not be salvaged.

"Since Aloha first announced it was filing for bankruptcy, the state has been in discussions with cargo operators to identify other alternatives for the transportation of goods between the islands. Many of the shippers that use Aloha cargo service have made contingency plans with other air or sea carriers," she said in a statement.

Lingle said the state activated its multiagency Rapid Response Team to help the 300 employees and their families.

"The Rapid Response Team, led by the Department of Labor and Industrial Relations, will survey workers to evaluate their job skills and determine what type of job placement assistance might be needed. The team will also discuss available benefits and programs, including unemployment insurance, health insurance coverage, job placement services and training opportunities."

State House Speaker Calvin Say called the shutdown a sign of the struggling economy.

"I will be working with our Neighbor Island lawmakers to determine how we can help the residents and businesses," Say said. "This is one more indicator that our economy is suffering, and that we need to be extremely cautious with spending going forward. It is also a wake-up call for all of us on the importance of our transportation infrastructure."

Eight C-17 cargo aircraft based at Hickam Air Force Base jointly maintained and operated by the Hawai'i Air National Guard and active-duty Air Force are used for worldwide missions, including humanitarian relief efforts, but they may not be an option.

Lt. Col. Chuck Anthony, a Hawai'i National Guard spokesman, said he was not aware of any consideration being given to using C-17s for critical cargo deliveries. "If there is a bona fide emergency, we can transport those things," Anthony said. "But it has to be an emergency-type situation."

Advertiser staff writers Rod Ohira, William Cole and Derrick DePledge contributed to this report.