January 5, 2004
The parent of Aloha Airlines has filed for bankruptcy, as profitable Southwest Airlines firms up plans to add Honolulu to a growing roster of destinations.
Aloha brings to five the number of U.S. airline companies operating under bankruptcy protection. It follows the 2003 bankruptcy filing of Hawaiian Airlines, its primary competition.
Also operating under bankruptcy protection are United Airlines and ATA, both with a major presence in the islands.
It's ATA's bankruptcy that may present the biggest threat to Aloha and Hawaiian. Southwest has acquired some of ATA's prime airport gate leases and will be operating code-share flights with ATA.
That gives Southwest the opportunity to schedule flights to Honolulu and to add popular airports it has long been shut out of, including New York's La Guardi and Washington's Reagan National.
Southwest, the fourth-largest U.S. carrier, is the only major airline to consistently report a profit in recent months.
