Aloha Airlines Cleared to Fly Out of Bankruptcy
HONOLULU, Nov. 30 /PRNewswire/ -- U.S. Bankruptcy Judge Robert J. Faris has confirmed Aloha Airlines' plan of reorganization, setting a course for the Hawaii-based airline to exit from Chapter 11 as early as December 15, 2005 -- less than a year after Aloha filed for bankruptcy relief.
Pending ratification of a new labor agreement by Aloha's pilots and resolution of certain issues, the Court gave its approval yesterday to the reorganization plan that will enable the Yucaipa Companies, Aloha Aviation Investment Group (AAIG) and the Ching and Ing families to recapitalize the Company with a combination of $50 million in equity and up to $50 million in debt financing.
"This is a significant moment in the 60-year history of Aloha Airlines," said David A. Banmiller, Aloha Airlines president and chief executive officer. Thanks to our dedicated, hard-working employees and the local shareholders of this Company, all of whom have made sacrifices, Aloha Airlines will continue to serve Hawaii's people. And thanks to the financial commitment and enthusiastic support of Yucaipa and AAIG, Aloha is positioned to prosper and grow. I must also thank our elected officials for their support and our customers, who remained loyal and provided the hope we needed to get through each day."
Aloha and its parent company, Aloha Airgroup, Inc., filed for Chapter 11 bankruptcy protection on December 30, 2004. Since then the Company has made changes to staffing, scheduling, aircraft leases and operations, in order to shed more than $75 million a year in costs.
Founded in 1946, Honolulu-based Aloha Airlines is Hawaii's favorite airline. Aloha offers 700 inter-island flights a week and 140 transpacific flights a week between Hawaii and convenient airports in Oakland, Sacramento, Orange County and San Diego, California, and Las Vegas and Reno, Nevada.
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