billso.com

The Honolulu Star-Bulletin reported this morning that the last remaining business unit of bankrupt Aloha Airlines may shut down as early as today. I mentioned yesterday in this billso.com article that Aloha had shut down its air cargo business Monday.

If the contract services business does shut down, passenger flights on the following carriers may be suspended and thousands of passengers will might be stranded in the State of Hawaii:

• American Airlines
• US Airways
• Japan Airlines
• Air Canada
• Korean Air
• China Airlines

Aloha’s services unit provided gate agents, baggage services and ground personnel for these and other airlines. Outsourcing these functions to Aloha helped these airlines reduce or eliminate their payrolls in Hawaii

Pacific Air Cargo had made a bid to buy the contract services business, but the US Bankruptcy Court did not appoint a liquidation trustee yesterday to supervise the contract services business. Kany of the 950 contract services employees have decided to continue working without any guarantee that they might be paid. The deal is set to close next Monday, 5 May 2008, but PAC is trying to advance that date, and the Honolulu Advertiser reported today that PAC may try to start its own interisland air cargo business.

“I put the burden on all of our guys,” said Randy Kauhane, assistant general chairman of International Association of Machinists and Aerospace Workers, District Lodge 141. “I told our guys to continue to work for free if it means keeping the operation going until we can find out more details what’s going to happen. If we stop, it would interrupt the operations of the carriers that we service.”

Last night, Hawaii Governer Linda Lingle announced that she would not declare a state of emergency because of the Aloha cargo shutdown. I wonder what she will do if passengers are stranded? The Star-Bulletin published a blistering editorial this morning, taking Lingle and legislative leaders to task for their inaction during the last month.

Meanwhile, in another Star-Bulletin story, food services companies and Kauai businesses are asking the state to help restore Superferry service to that island. A small and vocal group of protesters helped stop the service in August 2007:

Jimmy Trujillo, one of the organizers of the anti-Superferry movement on Kauai, said the vessel still is not wanted.

“Aloha Air cargo is certainly a valued service. Perhaps Aloha Airlines should have been the beneficiary of a special legislative session,” Trujillo said.

“The military cargo Strykerferry isn’t the vehicle to carry depleted uranium and baked goods,” he added.

Trujillo was not available for further comment. Perhaps he has locked himself in the Iolani Palace with approximately 70 other sovereignty protesters who took over the grounds at 0530 this morning.

Got bread?

Yesterday’s shipment of Love’s bread and baked goods for Lihue is still in Los Angeles, because the contact shipper used United to fly items to Kauai. United Airlines has suspended its Kauai cargo shipments because the airline used Aloha’s cargo business for its Lihue ground services.

Love’s is shipping bread to Maui on the Superferry, according to this Star-Bulletin article.