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Aloha Airlines files for Chapter 11 bankruptcy protection

Aloha Airlines, the name of which means either hello or goodbye, may soon be saying its final farewell. Only two years since it emerged from bankruptcy, the longtime Hawaiian carrier is filing for Chapter 11 protection again.

Since the budget-airline Go! launched and started offering “predatory rates” in 2006, Aloha has failed to generate sufficient revenue. The skies aren’t so friendly between these two competitors. Aloha felt forced to match Go!’s below-cost fares despite record fuel prices, and claims Go! is partially responsible for its money troubles.

It’s now up to a bankruptcy court to approve a financing arrangement between General Motors Acceptance Corp. and Aloha to determine whether or not the airline can continue flying, and if up to 3,500 employees can keep their jobs.

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