Aloha Airlines may sue Hawaiian Airlines

Airline Industry Information, April 5, 2002

AIRLINE INDUSTRY INFORMATION-(C)1997-2002 M2 COMMUNICATIONS LTD

Aloha Airlines may sue rival Hawaiian Airlines over a breakup fee contained in the agreement of their failed merger.

The possible lawsuit involves a USD4m breakup fee, which called for USD3m going to Aloha and USD1m to Turnworks Inc, a Texas-based company working to merge the two carriers. According to the head of Aloha Airlines, the breakup fee agreement was not fulfilled, reported The Associated Press.

In other news, from 1 June 2002 Aloha Airlines will operate a daily nonstop service between Honolulu and Burbank, California. The airline will also launch a new service between Honolulu and Vancouver, Canada, on 15 June 2002. The two routes will be served by Boeing 737-700 aircraft.

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