Quote: Saltchuk confirms it is buying Aloha's cargo business
The owner of Young Brothers/Hawaiian Tug & Barge today confirmed that it is buying Aloha Airlines' air cargo operations.
Saltchuk Resources Inc. said it reached an agreement with Aloha and its chief lender GMAC Commercial Finance LLC to purchase the shuttered air freight operations, which handled 85 percent of all goods flown between the islands.
Saltchuk said it plans to hire existing Aloha employees but did not say if it would retain all 300 of the company's air cargo employees.
Great news for Aloha Cargo employees as well as the people on the neighbor islands. Interestingly, the Star Bulleting report this morning noted that Saltchuk has approval to use Aloha's certificate until the FAA's fast track certificate is granted in about 2 weeks.
-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
HAL From United States, joined Jan 2002, 1786 posts, RR: 50 Reply 2, posted (1 year 7 months 1 week 2 days 8 hours ago) and read 6847 times:
Excellent news! Flying a specialized cargo operation like this takes a lot of know-how and specific equipment. It would have been a shame to let all that Aloha knowledge and experience go to waste by having another operation try to do a start-up. The islands so depended on the AQ cargo operation that it would have been a serious economic hit to the state if it had been allowed to go away. Hopefully this will allow a little normalcy to return to the islands.
I'm happy for the senior AQ crews and employees too. It will be nice to have them around longer.
HAL
One smooth landing is skill. Two in a row is luck. Three in a row and someone is lying.
TVNWZ From United States, joined Feb 2006, 1587 posts, RR: 0 Reply 3, posted (1 year 7 months 1 week 2 days 7 hours ago) and read 6642 times:
Interesting. I wonder what this does to the pilot's complaints about senority. It appears that it might be negated with the formation of a new company that will be "hiring' from the Aloha pool.
Imapilotaz From , joined Dec 1969, posts, RR: Reply 4, posted (1 year 7 months 1 week 2 days 6 hours ago) and read 6523 times:
Quoting HAL (Reply 2): Flying a specialized cargo operation like this takes a lot of know-how
Special know-how like scheduling a 5 airplane airline like every other airline in the world? It actually becomes much easier when you control 85% of the market and have virtually no competition.
Great news for those employees, as I know first hand what its like to shut down an airline and be left with no income to pay for even groceries.
ManchesterMAN From United Kingdom, joined Sep 2003, 1113 posts, RR: 0 Reply 5, posted (1 year 7 months 1 week 2 days 6 hours ago) and read 6418 times:
Does anyone know if United Airlines Cargo will continue to interline with the new Aloha Cargo? Saw this the other day and was interested to know who UA would team up with for their inter-island cargo?
Flying_727 From United States, joined Jun 1999, 393 posts, RR: 7 Reply 6, posted (1 year 7 months 1 week 2 days 5 hours ago) and read 6251 times:
Quoting ManchesterMAN (Reply 6): Does anyone know if United Airlines Cargo will continue to interline with the new Aloha Cargo?
I'm sure with the volatility of Aloha that United will continue looking for another vendor. I assume United will do as it does at other stations and outsource to another vendor.
Brilondon From Canada, joined Aug 2005, 1507 posts, RR: 0 Reply 8, posted (1 year 7 months 1 week 2 days 5 hours ago) and read 6193 times:
Quoting ManchesterMAN (Reply 6): Does anyone know if United Airlines Cargo will continue to interline with the new Aloha Cargo? Saw this the other day and was interested to know who UA would team up with for their inter-island cargo?
I am surprised that they did not buy Aloha Cargo outright when Aloha went into bankruptcy.
Having low expectations means you won't be disapointed.
IAHFLYR From United States, joined Jun 2005, 3428 posts, RR: 38 Reply 12, posted (1 year 7 months 1 week 2 days 2 hours ago) and read 5860 times:
Outstanding news.....having been in the islands this week and watching the actual shutdown from the local news, seeing the airplanes sitting on the ramp, watching the scrambling to get cargo delivered to the islands has been an eye opening experience.
GO ALOHA CARGO.....and sure hope the passenger service comes back as well, but that doesn't look promising at all.....and even on a Hawaiian Airlines flight yesterday some of the crew was even hoping Aloha passenger service returns.
ER757 From Cayman Islands, joined May 2005, 1245 posts, RR: 7 Reply 13, posted (1 year 7 months 1 week 2 days 2 hours ago) and read 5809 times:
Quoting National757 (Reply 9): What about the loss of goodwill from the sudden, unexpected shutdown? Will Aloha Cargo's customers return to the carrier when they restart operations?
I'd venture to say they will, especially since no one else has so far stepped in to fill the void.
Good luck to the new AQ cargo, I wish them well
Aloha73G From United States, joined Jul 2003, 2134 posts, RR: 6 Reply 14, posted (1 year 7 months 1 week 2 days 2 hours ago) and read 5775 times:
Quoting National757 (Reply 9): What about the loss of goodwill from the sudden, unexpected shutdown? Will Aloha Cargo's customers return to the carrier when they restart operations?
Absolutely. They have NO other option.
-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
FlyUSCG From United States, joined Jun 2006, 656 posts, RR: 0 Reply 15, posted (1 year 7 months 1 week 2 days ago) and read 5147 times:
Quoting Imapilotaz (Reply 4): It actually becomes much easier when you control 85% of the market and have virtually no competition.
And I think that is the root of the original shutdown. A business model that survives with basically no competition and then someone new comes in, you can't compete and your gone. Now granted I don't know all that much about how AQ ran things over there, but it seemed like they were pretty much the only dominate interisland airline over there. As for the cargo ops, thats great for them, but just set up a company that can survive with some competition.
Quote: Aloha Airlines will resume cargo operations tonight under an agreement reached in federal bankruptcy court.
A court-appointed trustee will oversee the cargo division until May 14 when the sale of the unit will be completed to Seattle-based Saltchuk Resources Inc., the owner of Young Brothers/Hawaiian Tug & Barge.
"They are waiting for me to push the button" to resume service, said Aloha's chief executive David Banmiller.
Quoting Aloha717200 (Reply 16): Do we know if the name and logo will change?
I read somewhere (can't find it) that once the sale closes, it will operate under a new corporate name. I am not sure if the "marketing" name will remain Aloha Air Cargo. The corporate name is changing for sure though.
-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
LAXintl From United States, joined May 2000, 12165 posts, RR: 22 Reply 18, posted (1 year 7 months 1 week 1 day 22 hours ago) and read 4573 times:
Quoting Aloha73G (Reply 17): The corporate name is changing for sure though.
The formed Saltchuk subsidiary is called Aeko Kula Inc.
Actually I believe Saltchuk made a rather smart play, however the results of which are not quite assured of working yet.
By pulling out of its bidding, and forcing the case to convert into a Ch7 liquidation, Saltchuk not only was able to reduce the cost of the sale by a reported $3million, the union contracts that previously came with Aloha are likely no longer valid, as Saltchuk its no longer buying the Aloha corporate division directly, but instead simply pieces.
Apparently Aeko Kula Inc, will be able to employ to its choosing the number of employees it requires, and pay them as it wishes and not have to follow previous AQ CBAs. This is particularly important with the ALPA crew members had previously insisted the more senior (average pay $122,000) guys go with any cargo ops sale. As reference Saltchuck with its Northern Air Cargo division in Alaska only pays an average pilot wage of $55,000.
Lets see if ALPA members decide to come to work under the Aeko Kula corporate banner and its terms, or if they basically sick out.
From the desert to the sea, to all of Southern California
HAL From United States, joined Jan 2002, 1786 posts, RR: 50 Reply 20, posted (1 year 7 months 1 week 1 day 21 hours ago) and read 4302 times:
Quoting BP1 (Reply 19): It looks like the current Aloha Air Carrier Certificate will continue to be used:
If that is true, then Saltchuck will have a battle on their hands trying to dump the current union and seniority list for the pilots. Having the same certificate means (from a legal standpoint) that it is the same airline, and the CBA between ALPA and Aloha still stands. Saltchuck will likely have to abide by that agreement, including seniority and pay issues.
Quoting BP1 (Reply 19): Now, will the -200's be dumped and the -700's be converted to Cargo?
I don't think so. All the -700's were leased, and have pretty much all gone back to the lessors. The lessors (I'm sure) wouldn't want to have their aircraft cut up and changed into cargo versions.
HAL
[Edited 2008-05-01 23:55:44]
One smooth landing is skill. Two in a row is luck. Three in a row and someone is lying.
Halaka From United States, joined Mar 2001, 29 posts, RR: 0 Reply 21, posted (1 year 7 months 1 week 1 day 21 hours ago) and read 4165 times:
Quoting IAHFLYR (Reply 12): Outstanding news.....having been in the islands this week and watching the actual shutdown from the local news, seeing the airplanes sitting on the ramp, watching the scrambling to get cargo delivered to the islands has been an eye opening experience.
Indeed. I have been in Kauai this week and have seen firsthand the bread shortage in particular. Last night at the Foodland in Princeville I heard the guy from Loves bread who was stocking shelves telling a Foodland employee about how the bread was going over to the mainland and then back again on direct UA/DL/US flights. It would be fascinating to know what those loaves of bread that I saw really cost in light of the extraordinary means they had to take to ship them here.
Aloha73G From United States, joined Jul 2003, 2134 posts, RR: 6 Reply 22, posted (1 year 7 months 1 week 1 day 20 hours ago) and read 4061 times:
from the Star Bulletin:
Quote: Field (the bankruptcy trustee), who didn’t accept his appointment as trustee until this afternoon, said he also plans to file a motion to reject all six of Aloha’s labor union contracts. That motion also will be heard on May 12.
Sadly, I think the contracts will probably be rejected. I would assume that if (some of) the Aloha pilots don't agree to fly the planes, Saltchuk will bring in some of theirs from Alaska.
I guess at this point it is a decision between keeping a few people employed (for lower wages) or having no one employed.
Union issues aside--Aloha Cargo is badly needed to keep the islands functioning.
Quoting Aloha717200 (Reply 16): Do we know if the name and logo will change?
My guess is that the name/logo will stay. Note that Saltchuk has kept the Young Brothers name for interisland shipping. The Aloha name is still worth a lot in the community (sadly, probably more now than ever before), and I see no reason to change it. Hawai'i is one place where local brands/companies are treasured.....be they banks, supermarkets or airlines.
-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
Ha763 From United States, joined Jan 2003, 2800 posts, RR: 8 Reply 23, posted (1 year 7 months 1 week 1 day 19 hours ago) and read 3996 times:
Quoting BP1 (Reply 19): It looks like the current Aloha Air Carrier Certificate will continue to be used:
They need the air carrier certificate in order to fly right now. No certificate, no flying. There was talk that the AQ certificate is only being used until Saltchuck can get their own.
Quoting HAL (Reply 20): If that is true, then Saltchuck will have a battle on their hands trying to dump the current union and seniority list for the pilots. Having the same certificate means (from a legal standpoint) that it is the same airline, and the CBA between ALPA and Aloha still stands. Saltchuck will likely have to abide by that agreement, including seniority and pay issues.
The trustee will file a motion to reject all the CBAs on May 12, the day that the sale is to be heard by the court. This motion will be granted. Saltchuck will not have to follow any AQ CBA and will have the ability to choose who they want to hire.
Pohakuloa From United States, joined Jun 2006, 274 posts, RR: 0 Reply 24, posted (1 year 7 months 1 week 1 day 19 hours ago) and read 3900 times:
Quoting Ha763 (Reply 23): They need the air carrier certificate in order to fly right now. No certificate, no flying. There was talk that the AQ certificate is only being used until Saltchuck can get their own.
If this does happen, do you know if they will be allowed to continue to use the 732's and their gloriously loud engines without the installation of hushkits under their new certificate? I know exemptions were granted (somewhere i cant recall exactly) to keep AQ's louder JT8D's, will they be able to keep it under the new license? Or will they be forced to comply with the noise regulations or would they be forced to get newer aircraft?
Correct me and flame me all you guys want, I just want to know if any of you guys know what the deal is with this situation.
Aloha73G From United States, joined Jul 2003, 2134 posts, RR: 6 Reply 25, posted (1 year 7 months 1 week 1 day 19 hours ago) and read 3872 times:
The original exemption was slipped into a bill by Senator Inouye and was written in such a way that it applied only to HA and AQ in Hawai'i....it applied to Alaska also, but I'm not sure on the Alaska restrictions.
My guess would be that the exemption will NOT transfer to the new owner, but that Senator Inouye will somehow find a way to allow the 732s to keep flying, atleast for the time being.
It is interesting that the cargo operation negotiations were restarted at Sen. Inouye's urging (perhaps he assured this issue would be "taken care of"). I would assume he is partially responsible for Saltchuk's "fast-track" certificate and will also make sure any exemptions needed for the 732s will be taken care of. Interisland air cargo is too vital to require them to comply immediately. It would be much more reasonable to give them atleast a year to make any necessary changes (new aircraft/hush-kits).
Note that Sen. Inouye is in line to become the Chair of the "all powerful" Senate Appropriations Committee if Sen. Robert Byrd (D-WV) steps down due to his failing health.
-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
26 Pohakuloa: Again mahalo Aloha73G, never seems to fail to get someone who knows things I dont know too much about (yet) and come back with the answers so swiftly!
27 Heathrow: Good news for AQ! Will they be sending the convertable 732? I hear it's a combi now....hahaha. Anyways, How much traffic is there cargo-wise for AQ? I
28 MCOflyer: I am interested in seeing how this guy runs the company and whether he makes money or looses money during his first quarter of operations. Hunter
29 UA76Heavy: I'm glad Senator Inouye is involved. Rep. Neil Ambercrobie wanted Gov. Lingle to call up the National Guard to move freight between the islands--what
30 LAXintl: Aloha Airlines filed two petitions with the DOT for what basically amounts to an emergency authority to transfer its operating certificate to Aeko Kul
31 LAXintl: ALPA national has objected to Aloha's request for a hastened process, and what would have been a elimination of the standard comment period of anyone
32 IFlyATA: Did anyone catch how much the AQ certificate went for in this deal?
33 HAWK21M: What would this fleet comprise of? egds MEL.
34 AAH732UAL: Good news to a point. At least the AAH/AQ name will still be around in a limited way.
35 LAXintl: Reportedly $10.5 million, however this should be confirmed by the judge on the 14th --- if all the stars align just right and the FAA gives it blessi
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