Aloha Airlines seeks Chapter 11 protection

HONOLULU – Aloha Airlines filed for Chapter 11 bankruptcy protection Thursday, a little more than two years after emerging from bankruptcy.

Aloha said it will continue to fly as long as a bankruptcy court accepts the airline’s financial plan to keep operating.

The airline said in its filing that it was unable to generate sufficient revenue due to what it called “predatory pricing” by Mesa Air Group Inc.’s go! airline.

Aloha Airgroup Inc. emerged from bankruptcy protection in February 2006, 14 months after filing under Chapter 11.

Phoenix-based Mesa Air Group launched go! into the interisland market later in 2006 to compete with Aloha, as well as Hawaiian Airlines Inc.

In January, go! reported a $20 million loss in its first 16 months of operations. Meanwhile, Aloha and Hawaiian reported combined losses of nearly $65 million since go! began operating.

Aloha said it was forced to match go!’s below-cost fares at a time when the airline industry was facing unprecedented increases in the cost of jet fuel.

“It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action,” said David A. Banmiller, Aloha’s president and CEO.