Aloha Air’s Cargo Division Shutting Down
Tuesday, April 29th, 2008HONOLULU — Aloha Airlines informed a bankruptcy judge that the company is unable to sell its cargo division and must shut down operations at the end of business Monday.
The announcement came during a hearing to decide whether Aloha pilots could go on strike over a contract dispute.
Aloha attorneys said two companies that were interested in buying the cargo division pulled out within two hours of each other on Monday afternoon. When that happened, Aloha’s primary lender, GMAC, said it was unwilling to continue financing operations.
Aloha bankruptcy attorney Paul Singerman said he had “tremendous regret for the circumstances.”
The shutdown means the end for about 1,000 employees.
The end of Aloha cargo will make a major impact on Hawaii’s economy. (Read the full post about ‘Aloha Air’s Cargo Division Shutting Down’…)