The $100 million that billionaire Ron Burkle's private equity firm Yucaipa Cos. LLC pumped into Aloha since its first bankruptcy wasn't enough to create clear skies for the Honolulu-based carrier. Since one-way puddle jumps between Honolulu and Maui dipped to $19 last year, Aloha hasn't exactly welcomed Mesa Air Group Inc.'s new Go! Airlines into the Hawaiian island-hopping competitive mix. In fact, Aloha cited "predatory pricing" from Go! for being pushed into its second Chapter 11 in Honolulu as it scurries to attract investors and/or buyers of its cargo and contract services.
Aloha and rival Hawaiian Airlines Inc. separately sued Mesa Air for illegally undercutting rates. Hawaiian Airlines won an $80 million judgment last fall, which Mesa Air is appealing, while Aloha's suit is set to begin this October. Aloha emerged from its 2004 bankruptcy in February 2006. - Terry Brennan
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The increasingly unfriendly and competitive skies of Hawaii combined with soaring oil prices to land Aloha Airlines Group Inc. in bankruptcy court for the second time in four years.
