Aloha Air Cargo
Encyclopedia
Aloha Air Cargo is an American
cargo
airline headquartered in Honolulu CDP
, City and County of Honolulu, Hawaii
, operating from a hub
at Honolulu International Airport
. Formerly part of Aloha Airlines
, it became an independent cargo operator following the closure of the passenger airline in 2008.
After the shutdown of passenger operations, Aloha and its creditors sought to auction off its profitable cargo and contract services division. Several companies expressed interest in purchasing Aloha's cargo division, including Seattle-based Saltchuk Resources, California
-based Castle & Cooke Aviation, and Hawaii-based Kahala Capital (which included Richard Ing, a minority investor in the Aloha Air Group and member of Aloha's board of directors). However, a disagreement between cargo division bidders and Aloha's primary lender, GMAC Commercial Finance, ended with the bidders dropping out of the auction. Almost immediately afterwards, GMAC halted all funding to Aloha's cargo division, forcing all cargo operations to cease; at the same time, Aloha's board of directors decided to convert its Chapter 11 bankruptcy reorganization filing into a Chapter 7
bankruptcy liquidation.
Saltchuk Resources decided to renew its bid to purchase the cargo division at the urging of U.S. Senator Daniel Inouye
, and a deal between Aloha and Saltchuk was struck and approved by the federal bankruptcy court, where Saltchuk would purchase the cargo division for $10.5 million. The sale was approved by federal Bankruptcy Judge Lloyd King on May 12, 2008, with the sale expected to close two days later.
Prior to its bid for Aloha, Saltchuk Resources was already present in Hawaii
through its subsidiaries Young Brothers/Hawaiian Tug & Barge, Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores. The company also owns Northern Air Cargo
, Alaska
's largest cargo airline. A new subsidiary, Aeko Kula Inc., was set up by Saltchuk to operate Aloha Air Cargo.
On the May 15, 2008 the airline received its FAA and Department of Transport authority to operate as an independent airline. The airline went through a big transformation in the first two years of operation. The airline's first president, Mike Malik, rebranded the airline; launched a host of new products and services; and established "Aloha Tech Ops", the MRO division. During this time the airline won numerous awards and was named Hawaii's Cargo Airline of the year for 2008.
Aloha Air Cargo Locations & Maps
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
cargo
Cargo
Cargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport.-Marine:...
airline headquartered in Honolulu CDP
Honolulu, Hawaii
Honolulu is the capital and the most populous city of the U.S. state of Hawaii. Honolulu is the southernmost major U.S. city. Although the name "Honolulu" refers to the urban area on the southeastern shore of the island of Oahu, the city and county government are consolidated as the City and...
, City and County of Honolulu, Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
, operating from a hub
Airline hub
An airline hub is an airport that an airline uses as a transfer point to get passengers to their intended destination. It is part of a hub and spoke model, where travelers moving between airports not served by direct flights change planes en route to their destinations...
at Honolulu International Airport
Honolulu International Airport
Honolulu International Airport is the principal aviation gateway of the City & County of Honolulu and the State of Hawaii and is identified as one of the busiest airports in the United States, with traffic now exceeding 21 million passengers a year and rising.It is located in the Honolulu...
. Formerly part of Aloha Airlines
Aloha Airlines
Aloha Airlines was an American airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii, operating from a hub at Honolulu International Airport...
, it became an independent cargo operator following the closure of the passenger airline in 2008.
History
Aloha Airlines was formed in 1946 and expanded over the next few decades. It filed for Chapter 11 bankruptcy protection in 2004 an attempt to cut costs and remain competitive with other airlines serving Hawaii. Following approval of new labor contracts and securing additional investment from new investors, the airline emerged from bankruptcy protection on February 17, 2006. The airline filed for Chapter 11 bankruptcy protection again on March 20, 2008. Ten days later, on March 30, 2008, Aloha Airlines announced the suspension of all scheduled passenger flights, with the final day of operation to be March 31, 2008.After the shutdown of passenger operations, Aloha and its creditors sought to auction off its profitable cargo and contract services division. Several companies expressed interest in purchasing Aloha's cargo division, including Seattle-based Saltchuk Resources, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
-based Castle & Cooke Aviation, and Hawaii-based Kahala Capital (which included Richard Ing, a minority investor in the Aloha Air Group and member of Aloha's board of directors). However, a disagreement between cargo division bidders and Aloha's primary lender, GMAC Commercial Finance, ended with the bidders dropping out of the auction. Almost immediately afterwards, GMAC halted all funding to Aloha's cargo division, forcing all cargo operations to cease; at the same time, Aloha's board of directors decided to convert its Chapter 11 bankruptcy reorganization filing into a Chapter 7
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...
bankruptcy liquidation.
Saltchuk Resources decided to renew its bid to purchase the cargo division at the urging of U.S. Senator Daniel Inouye
Daniel Inouye
Daniel Ken "Dan" Inouye is the senior United States Senator from Hawaii, a member of the Democratic Party, and the President pro tempore of the United States Senate making him the highest-ranking Asian American politician in American history. Inouye is the chairman of the United States Senate...
, and a deal between Aloha and Saltchuk was struck and approved by the federal bankruptcy court, where Saltchuk would purchase the cargo division for $10.5 million. The sale was approved by federal Bankruptcy Judge Lloyd King on May 12, 2008, with the sale expected to close two days later.
Prior to its bid for Aloha, Saltchuk Resources was already present in Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
through its subsidiaries Young Brothers/Hawaiian Tug & Barge, Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores. The company also owns Northern Air Cargo
Northern Air Cargo
Northern Air Cargo is an American cargo airline based in Anchorage, Alaska, USA. It operates services within Alaska and to Canada and mainland USA. Its main base is Ted Stevens Anchorage International Airport, with a hub at Fairbanks International Airport....
, Alaska
Alaska
Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
's largest cargo airline. A new subsidiary, Aeko Kula Inc., was set up by Saltchuk to operate Aloha Air Cargo.
On the May 15, 2008 the airline received its FAA and Department of Transport authority to operate as an independent airline. The airline went through a big transformation in the first two years of operation. The airline's first president, Mike Malik, rebranded the airline; launched a host of new products and services; and established "Aloha Tech Ops", the MRO division. During this time the airline won numerous awards and was named Hawaii's Cargo Airline of the year for 2008.
Hawaii
- Hilo (Hilo International AirportHilo International AirportHilo International Airport , formerly General Lyman Field, is owned and operated by the Hawaii state Department of Transportation. Located in Hilo, Hawaii County, the airport encompasses and is one of two major airports on Hawaii Island and one of five major airports in the state...
) - HonoluluHonolulu, HawaiiHonolulu is the capital and the most populous city of the U.S. state of Hawaii. Honolulu is the southernmost major U.S. city. Although the name "Honolulu" refers to the urban area on the southeastern shore of the island of Oahu, the city and county government are consolidated as the City and...
(Honolulu International AirportHonolulu International AirportHonolulu International Airport is the principal aviation gateway of the City & County of Honolulu and the State of Hawaii and is identified as one of the busiest airports in the United States, with traffic now exceeding 21 million passengers a year and rising.It is located in the Honolulu...
) Hub - Kahului (Kahului AirportKahului AirportKahului Airport is a regional airport in the state of Hawai'i, located east of the Kahului CDP in Maui County on the island of Maui near Haleakala. Most flights into OGG originate from Honolulu International Airport; the Honolulu–Kahului corridor is one of the busiest air routes in the US,...
) - Kona (Kona International AirportKona International AirportKona International Airport at Keāhole is an airport on the Island of Hawaii, in Kalaoa CDP, Hawaii County, Hawaii, United States. The airport serves leeward, or Western Hawaii island, including the town of Kailua-Kona and the major resorts of the North Kona and South Kohala districts.- History...
) - Lihue (Lihue Airport)
Aloha Air Cargo Locations & Maps
Fleet
As of May 2010, the Aloha Air Cargo fleet consisted of the following aircraft:| Aircraft | Total | Cargo Capacity |
Routes | Notes |
|---|---|---|---|---|
| Boeing 737-200C Boeing 737 The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers... |
4 | 30,000 lbs. | 16 to 18 Hawaii inter-island cargo flights |
Former aircraft of Aloha Airlines Aloha Airlines Aloha Airlines was an American airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii, operating from a hub at Honolulu International Airport... |
| Saab 340 Saab 340 The Saab 340 is a discontinued Swedish two-engine turboprop aircraft designed and initially produced by a partnership between Saab and Fairchild Aircraft in a 65:35 ratio... |
2 |