State of the Airlines

Tuesday, February 15, 2005

NEWS: Aloha Airlines Clears Another Hurdle.

Aloha Airlines advanced another step along the road out of bankruptcy with the announcement that the bankruptcy court has approved three union contracts recently ratified by their respective members. This leaves only two more for the court to approve. Aloha has been able to keep the union negotiation process moving along at a brisk pace which is helping them towards their goal of $40 million in annual labor savings. Their progress looks especially good when you compare them to their nearest competitor, Hawaiian Airlines.

Aloha Airlines appears to have an advantage on Hawaiian Airlines in terms of union relations. There has been some ill rhetoric between Hawaiian's management and their unions and talk of needing to involve the bankruptcy court to solve the problem. On the other hand Aloha has managed the process with a minimum of fuss and in fairly short order.

I can't help but feel that the first one of these island airlines to exit bankruptcy wins. By win I mean the first airline out will grab a substantial piece of the market share in Hawaii leaving an untenable sitatuion for the other. So far Aloha is catching all the right waves. (I know...stupid sappy pun...I couldn't help it...I need counciling)