ALPA issues statement on proceedings on the sale of Aloha Airlines to Saltchuk Resources

Airline Industry Information,  May 5, 2008  

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AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

The Air Line Pilots Association (ALPA), representing the Aloha Airline pilot leadership, released a statement on Friday (2 May) following the suspension of proceedings for the sale of Aloha Airline's cargo operations to Saltchuk Resources Inc.

The suspension took place after Saltchuk renewed its offer to buy the cargo division and asked the Bankruptcy Court for extraordinary consideration and relief. The sale offer reportedly came just three days after Aloha Airlines and its lender shut down operations completely and asked to liquidate the company under Chapter 7 of the bankruptcy code.

ALPA's statement claims that its offer to continue operations and help solve any problems was bypassed by Saltchuk Resources, which directly sought from the Judge the approval to wipe out the companies' outstanding obligations and reject all union contracts.

According to ALPA, the Court refused to authorise immediate consideration of the rejection of union contracts and the Judge ordered the debtors to give unions and employees notice of the proposed contract rejection and the filing of a motion to sell assets on notice.

ALPA's aim is to protect the employees of the bankrupt airline and claims that Saltchuk Resources will not say whether it will agree to meet with employees or employ current Aloha pilots and other employees.

Saltchuk Resources apparently requested a two-week transition period, which began on 1 May, under which Aloha Cargo resumed flying until the closing date of the purchase.

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