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!!!
Here are some of the news stories about it:
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!