Nearly two years have passed since Aloha Airlines made the sad and unfortunate announcement that after 61 years of service to the people of Hawai'i and the western mainland, all passenger flights would soon end. For the friends, 'ohana and passengers of Aloha, it was a day of sadness. Thankfully since then, many wonderful videos have been shared honoring an airline that is truly missed by many.
Showing posts with label airline bankruptcy. Show all posts
Showing posts with label airline bankruptcy. Show all posts
Tuesday, March 2, 2010
Monday, October 6, 2008
Sun Country Declares Bankruptcy, Plans To Continue Flights
In a press release today, Sun Country airlines, facing a significant cash shortage, announced it has filed for bankruptcy. Petters Aviation, which owns all of Sun Country's voting shares, also filed.
"We were forced to take this action as a result of recent events at Petters Group Worldwide," Sun Country CEO Stan Gadek said in a prepared statement.
The airline plans to continue operating a regular flight schedule, but last week warned employees of significant layoffs or a complete shutdown by December 1st if the cash problems were not resolved.
Sun Country currently offers flights between San Francisco (SFO) and Minneapolis.
"We were forced to take this action as a result of recent events at Petters Group Worldwide," Sun Country CEO Stan Gadek said in a prepared statement.
The airline plans to continue operating a regular flight schedule, but last week warned employees of significant layoffs or a complete shutdown by December 1st if the cash problems were not resolved.
Sun Country currently offers flights between San Francisco (SFO) and Minneapolis.
Thursday, August 28, 2008
Zoom Airlines Grounds Flights, Files Bankruptcy
Canadian-based Zoom Airlines failed to receive additional funding from creditors Thursday, causing the airline to suspend operations and enter into Bankruptcy. Yet another victim to the high cost of fuel.In a press statement today, co-founders of Zoom stated, "We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff."
The discount carrier operated intra-Canada flights, and internationally between Canada and the U.K, Paris and Rome. Additional service was provided to/from New York, San Diego, Fort Lauderdale and Bermuda.
On the Zoom website, customers holding confirmed reservations are given direction on how to apply for a refund, and an option to receive a discounted price for re-booking with select carriers.
Saturday, June 7, 2008
How Changes In The Airline Industry May Affect You
By Mike Grasso
The past few months have been turbulent ones for the airline industry. Put simply, the airlines are shrinking. We already lost Aloha, ATA, and SkyBus - among others. Remaining airlines are finding ways to "trim the fat" and find reasonable ways to limit costs/increase revenue while being hammered with record high oil prices. These changes will affect most passengers in some form.
Reuters has reported that more than 50 towns and small across the United States will reportedly loose airline service alltogether by 2009. Existing service to major cities, including right here in the Bay Area will be trimmed where necessary. Having a plane 80% full was the industry gold standard, now the bar has been raised. The airlines can no longer sustain flying planes 20% empty with the current cost of crude oil at all time highs. This means you can plan on flying fuller plans in the future. On average, that empty middle seat will now be filled with a warm body.
A method the airlines will use to ensure fuller flights is to limit the number of daily flights to particular cities. For example, City A to City B may have previously operated 6 daily flights, that may be cut down to 5. It may seem insignificant, but if the demand is the same, you can bet those 5 flights will operate near capacity, not to mention cost you more.
Fewer flights mean that during irregular operations, such as weather or mechanical cancellations, finding another flight to standby on will become more difficult. On the other hand, fewer flights may help already congested airports, such as Chicago's O'Hare, and get flights off the ground sooner.
You can also expect that your airline ticket price includes a seat and few other amenities.
American Airlines for example announced plans to charge $15 to check in your first bag. They also announced a $5 fee to book award travel on their website. U.S Air and United are now charging $150+ to make changes on non-refundable tickets. The cost of alcohol and food on some airlines is also climbing. Expect other fees in the future, and adjustments to existing ones.
Finally, frequent flyer miles. If you've been reading my blog for a while, you know I am an advocate for using your miles. The airlines will continue to find methods to devalue your frequent flyer account, or resort to options limiting the number of new miles you can accrue, such as a recent policy change by United & U.S Air eliminating the 500 mile minimum rule on short-haul flights.
Although it may not sound it, I am an ally of the airlines. They are under extreme pressure to change a business model that is simply not working in this high-price-of-fuel environment. They are making adjustments the best they can, and ultimately some of these decisions will impact all of us during future travels.
The past few months have been turbulent ones for the airline industry. Put simply, the airlines are shrinking. We already lost Aloha, ATA, and SkyBus - among others. Remaining airlines are finding ways to "trim the fat" and find reasonable ways to limit costs/increase revenue while being hammered with record high oil prices. These changes will affect most passengers in some form.
Reuters has reported that more than 50 towns and small across the United States will reportedly loose airline service alltogether by 2009. Existing service to major cities, including right here in the Bay Area will be trimmed where necessary. Having a plane 80% full was the industry gold standard, now the bar has been raised. The airlines can no longer sustain flying planes 20% empty with the current cost of crude oil at all time highs. This means you can plan on flying fuller plans in the future. On average, that empty middle seat will now be filled with a warm body.
A method the airlines will use to ensure fuller flights is to limit the number of daily flights to particular cities. For example, City A to City B may have previously operated 6 daily flights, that may be cut down to 5. It may seem insignificant, but if the demand is the same, you can bet those 5 flights will operate near capacity, not to mention cost you more.
Fewer flights mean that during irregular operations, such as weather or mechanical cancellations, finding another flight to standby on will become more difficult. On the other hand, fewer flights may help already congested airports, such as Chicago's O'Hare, and get flights off the ground sooner.
You can also expect that your airline ticket price includes a seat and few other amenities.
American Airlines for example announced plans to charge $15 to check in your first bag. They also announced a $5 fee to book award travel on their website. U.S Air and United are now charging $150+ to make changes on non-refundable tickets. The cost of alcohol and food on some airlines is also climbing. Expect other fees in the future, and adjustments to existing ones.
Finally, frequent flyer miles. If you've been reading my blog for a while, you know I am an advocate for using your miles. The airlines will continue to find methods to devalue your frequent flyer account, or resort to options limiting the number of new miles you can accrue, such as a recent policy change by United & U.S Air eliminating the 500 mile minimum rule on short-haul flights.
Although it may not sound it, I am an ally of the airlines. They are under extreme pressure to change a business model that is simply not working in this high-price-of-fuel environment. They are making adjustments the best they can, and ultimately some of these decisions will impact all of us during future travels.
Wednesday, May 21, 2008
American To Begin Charging For Any Checked Bag
By Mike Grasso
After recently announcing a $25 fee for a second piece of checked luggage, American Airlines said today they also will begin assessing a $15 fee for the first piece of checked luggage. The Dallas-based carrier says it will cut domestic capacity by 10-11% the fourth quarter, lay off possibly several thousand jobs, and add additional fees for certain transactions.
American, like other airlines, are facing tough economic times. They are racing to find methods to reduce operating costs and generate additional revenue to offset record high jet fuel prices.
The new $15 fee becomes effective June 15th. American is the only legacy carrier in the United States to charge such a fee.
The parent company of American-AMR, saw its stock plummet over 30% today, now selling just under a mere $7 bucks.
In effect, the airline will push more people to try and carry fuller, heavier bags onto already cramped overhead space.
With recent airline bankruptcies and shutdowns, fuel surcharges, limiting mileage accrual, and charging baggage fees, we are truly living in a new era of air travel. We should expect a turbulent ride in the coming months as more big changes are surely in store for a deeply troubled airline industry.
After recently announcing a $25 fee for a second piece of checked luggage, American Airlines said today they also will begin assessing a $15 fee for the first piece of checked luggage. The Dallas-based carrier says it will cut domestic capacity by 10-11% the fourth quarter, lay off possibly several thousand jobs, and add additional fees for certain transactions.
American, like other airlines, are facing tough economic times. They are racing to find methods to reduce operating costs and generate additional revenue to offset record high jet fuel prices.
The new $15 fee becomes effective June 15th. American is the only legacy carrier in the United States to charge such a fee.
The parent company of American-AMR, saw its stock plummet over 30% today, now selling just under a mere $7 bucks.
In effect, the airline will push more people to try and carry fuller, heavier bags onto already cramped overhead space.
With recent airline bankruptcies and shutdowns, fuel surcharges, limiting mileage accrual, and charging baggage fees, we are truly living in a new era of air travel. We should expect a turbulent ride in the coming months as more big changes are surely in store for a deeply troubled airline industry.
Sunday, April 27, 2008
Eos Airlines Files Chapter 11, To Cease Operations Today
New York-based Eos Airlines announced Saturday they have filed for Chapter 11 bankruptcy and will cease operations by Sunday afternoon. Established in 2004, Eos is known for their all business class flights, operating daily departures from JFK to Europe. They had announced plans to expand their routes, including flights from Los Angeles.Jack Williams, Eos' CEO said they were unable to secure additional financing to keep the airline and its unique business model flying. In a press release, Williams added, “there are times in business when even though you execute your business plan and even though your employees do their jobs beautifully, external forces prevent you from controlling your own destiny."
Thursday, April 3, 2008
ATA Airlines Files for Bankruptcy, Cancels All Flights
Breaking NewsSecond airline this week to cease operations
Low-fare carrier ATA Airlines said it has filed for Bankruptcy Court protection and ordered the grounding all flights as it halted operations. The last scheduled flight landing early this morning. Nearly all of the airline's 2,230 employees were let go. Meanwhile, thousands of passengers were stranded at Oakland, Los Angeles, Chicago-Midway, and other airports across the U.S.
Earlier this week, citing chronic financial problems, Aloha Airlines announced the immediate end to all passenger flights. This left passengers scrambling to find new flights.
ATA airlines, which operated several daily flights from the mainland U.S to Hawai'i, blames the loss of a key military charter contract. In addition to scheduled airline service, ATA also provided charter service for the Pentagon.
ATA said passengers should seek alternative travel arrangements on their own. This morning Northwest Airlines announced that for a $100 fee, passengers confirmed on an ATA flight can standby for a flight on their airline. Southwest Airlines, which codeshared flights with ATA said they too will assist affected ATA customers.
Monday, March 31, 2008
Aloha Airlines Ends Six Decades of Island Spirit
Aloha Airlines halts all passenger service today. Meanwhile, the travel industry rushes to help passengers affected. Since 2000, Aloha Airlines flew Bay Area travelers to the islands of Hawai'i, and reunited island residents with family and friends here on the mainland. But Aloha Airlines history, mixed with ups and downs, runs much deeper to the people of Hawai'i.
"When its first flight took off from Honolulu in 1946, the interisland carrier that would become Aloha Airlines was an underdog created by minorities determined to succeed in post-war Hawai'i...and being a passenger was like flying with a local-style party. Flight attendants served pineapple juice, sang Hawaiian songs, danced the hula and even played the 'ukulele." -Mike Gordon (Honolulu Advertiser)
"Across the Islands yesterday, Aloha Airlines employees — and their families — reacted to the news that their ailing airline was shutting down passenger service, effective today. After the initial shock, there was a range of emotions — anger, anxiety and sadness." -Mary Vosino (Honolulu Advertiser)
"This is to Hawai'i what Katrina was to Louisiana, we're very much integrated into Hawai'i." -Randall Cummings, pilot for Aloha.
"Aloha is like an 'ohana." -Coreen Dijos, customer service agent for Aloha.
"This is the one job where everybody is like a family." - Shavonn Okamura, Aloha staff
Visit the Honolulu Advertiser for special ongoing coverage including slideshows of the airlines history and video of employee reaction.
The travel industry has been quick to respond. United Airlines, and to a lesser degree Hawaiian Airlines are offering affected Aloha passengers special accommodations and/or discounts. Marriott and Aqua Hotels have invited existing guests unable to leave the island special accommodations.
Sunday, March 30, 2008
Aloha Airlines Ceases Operations
Breaking NewsAloha Airlines, which has served the people of Hawai'i and mainland U.S for over 60 years, will end operations Monday. The airline, which filed for bankruptcy March 20th said in a press release that time ran out to find a buyer or secure other financing to keep the airline flying.
Passengers with confirmed flights on Aloha Airlines should contact partner United Airlines to discuss possible re-accommodation or discounted airfares.
This is truly a sad time for the people of Hawai'i, the some 1900 Aloha employees, loyal passengers and airline industry as a whole.