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As I mentioned on 2 April 2008, Aloha Airlines is still flying cargo flights in the state of Hawaii. It hasn’t been easy. Aloha flies 85% of the state’s air cargo, including postal mail, bread and other time-sensitive items. If Aloha stops flying, Hawaii’s economy will feel the effects within two days.

A report posted this evening on the newspaper’s web site says that GMAC has agreed to provide US$3 million in bridge financing while the Air Line Pilots Association and Aloha management are still negotiating.

UPDATE: here’s the full article from the Star-Bulletin’s 9 April 2008 print edition.

The main issue is which pilots will be retained when the cargo business is sold at auction on 24 April. Aloha management wants junior pilots, while ALPA favors the current collective bargaining agreement and senior pilots.

Cancellations and allegations

Meanwhile, Aloha canceled 7 of its 16 cargo flights today after pilots staged a sick-out. Mail and other time-sensitive cargo was shipped, but the situation will only get worse if the sick-outs continue.

An earlier report in the Tuesday print edition has more details. In the article, ALPA representatives claim that Aloha is blocking pilots from flying to Oahu for job fairs by confiscating their ID cards and turning off some information systems.

Senator Daniel Inouye (D-Hawaii) will hold a hearing of the US Senate Commerce, Science and Transportation Committee on Thursday, according to this Star-Bulletin report. Inouye chairs the committee, and he will examine the current state of the airline industry in Hawaii.

Aloha Airlines president David Banmiller and the state’s three other Congressional representatives have been invited to testify. Banmiller has become more vocal in recent days, as he provides more information about how state officials refused to assist Aloha Airlines during the last two years. This Pacific Business Story has more details.

No backup plan?

Meanwhile, USPS spokesman Duke Gonzales stated that there is no contingency plan for interisland mail service if Aloha stops flying. Aloha flies in all of the mail for the islands of Hawaii and Maui.

Hawaii residents have enough problems already, as Kilauea producing an increasing amount of vog. The Honolulu Advertiser reported this afternoon that Volcano National Park has been closed as air quality deteriorates.

Yesterday, the Hawaii Superferry started sailing between Honolulu and Kahului, Maui after a two-month repair cycle. See this Star-Bulletin story for more details. The Superferry can handle large delivery trucks and their cargo, but the company has been unable to maintain a reliable daily schedule since the service was launched in August 2007. The departure of ATA and Aloha Airlines gives the Superferry a fighting chance to hit breakeven, which is possible with about 400 passengers and 110 cars per voyage.

UPDATE: The Star-Bulletin ran a long article on the Superferry in the 9 April 2008 print edition, with a timeline and plenty of details.