Lahaina From United States of America, joined Sep 2000, 255 posts, RR: 0 Posted (7 years 5 months 3 weeks 2 days 1 hour ago) and read 1178 times:
The future of Aloha Airlines depends on its new investors. One of the conditions with the purchase is the pension for the pilots. The pilots have agreed to give in. Any news why I haven't heard anything on the local newspapers?
Aloha73G From United States of America, joined Jul 2003, 2305 posts, RR: 5 Reply 1, posted (7 years 5 months 3 weeks 2 days ago) and read 1158 times:
Aloha. The issue actually is that the government agency who is supposed to take over the pensions of companies in distress (Pension Benefit Guarantee Corporation or PBGC) has refused to take on Aloha's pensions. All of the employee groups have agreed to give up their pensions (NOTE: The Flight Attendants don't have a pension)
A condition of the new investors is that the pensions must be terminated. At this time Aloha is negotiating with the PBGC to resolve this issue. If it cannot be resolved soon, the most likely outcome is that Aloha will switch to a CH. 7 Bankruptcy filing and liquidate.
Being that if they do switch to a Ch. 7 the PBGC will get the pensions anyway, I don't think this will happen. If they take them willingly and let Aloha emerge from Ch. 11 the PBGC will get $4 million. Being that they let UA and US dump their pensions they should let Aloha do it too. It seems they are just scared of what may happen if they have to take DL's and NW's too, so are tryign to set some kind of precedent.
Basically, the PBGC has 30 days from Dec. 15 to file an appeal so if they can reach a consensus before then or choose not file an appeal, Aloha can emerge from Ch. 11 and continue operating.
I think (and hope) Aloha will make it out of this. Today marks 1 year in Ch. 11 for Aloha. Good Luck Guys!!!
Aloha73G From United States of America, joined Jul 2003, 2305 posts, RR: 5 Reply 3, posted (7 years 5 months 3 weeks 1 day 23 hours ago) and read 1111 times:
Quoting Lahaina (Reply 2): I thought the investors basically gave AQ until the end of this year for all the issues to be resolved?
The invewstors have given Aloha time to resolve this issue. They have invested too much into this to back out now.
Quoting Lahaina (Reply 2): PBGC may kill AQ and be stuck with the pension anyway.
This is exactly what doesn't seem to make sense on this issue. They are (most likely) going to have to take on the pensions anyway. Why not do it willingly and get $4 million instead of doing it involuntarily, getting nothing, killing Aloha, and putting 3,500+ people out of work???
I also hope this doesn't happen.
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
Kahala777 From , joined Dec 1969, posts, RR: Reply 4, posted (7 years 5 months 3 weeks 1 day 23 hours ago) and read 1086 times:
Quoting Aloha73G (Reply 3): This is exactly what doesn't seem to make sense on this issue. They are (most likely) going to have to take on the pensions anyway. Why not do it willingly and get $4 million instead of doing it involuntarily, getting nothing, killing Aloha, and putting 3,500+ people out of work???
Hawaii needs one solid and strong airline, the unity of Hawaiian and Aloha would really knock a punch to the likes of NWA, UAL, COA, AAL, and DAL. Time will tell, but Hawaiian Airlines is the long haul Hawaiian airline, while Aloha is the medium range airline. The synergy would work well. I say they need to get together and show the haoles what "Hawaiian Pride" is all about!