
Aloha Airlines announced today it's going into bankruptcy
Again!
Again!
Aloha Airlines declares itself a victim of "unfair competition" and rising fuel prices. While rising fuel prices may be a factor in Aloha Airlines demise, a more likely reason would be bad management.
How can a company successfully coming out of bankruptcy suddenly find itself out of business? How can a company that offers $49.00 dollar flights to Las Vegas and offer $100.00 flights inter-island stay competitive with smaller carriers?
It's easy!!
Out compete them with $1.00 Inter-Island Fares
Aloha, which filed for bankruptcy on Dec. 30, 2004 and again on March 30th, 2008, 10 days after placing itself under Chapter 11 bankruptcy protection, Aloha Airlines announced that March 31, 2008, would be the last day of scheduled passenger services both on transpacific and inter-island routes. For the second time in as little as three years, the airline carrier sought bankruptcy protection.
The airline blames discount and rival airline GO and its parent, Phoenix-based Mesa Air Group. Some 3,500 hundred workers will lose their jobs as a result of Aloha's decision. However, at one time, Aloha flights to Las Vegas were less than the inter-island flights. What's up with that?
Aloha chose to get into a price war with GO Airlines and lost. It was a bad decision and a poor choice. Aloha had some pretty good routes and also carried the US mail, plenty of investors and a loyal customer base. What happened to Aloha Airlines is the result of bad business practices by Aloha Airlines. The biggest looser are the employees and the customers.
What's for Dinner?
Steak (Rare) - it's a red meat day
