As Airlines Struggle, It’s More than Just Passengers Who Feel Pain

You might have heard on the news about Aloha Airlines shutting down operations in Hawaii after 50+ years of service.

Maybe you didn’t care because you fly American or United to the Islands from the mainland.

But airlines like Aloha did more than just fly passengers from the mainland or between islands. Like all the airlines, Aloha also carried cargo and mail on its planes. And, in fact, the company flew six flights a day of just cargo to the various Hawaiian Islands.

When the company went under, it wanted to continue its cargo business but GMAC Financing refused to give the company money to allow it to continue.

Suddenly, some of the islands that relied on Aloha’s cargo services for medical supplies, food, and mail, were without any way to get supplies.

As of two days ago from the Business Journal:

Neighbor Island businesses are scrambling to find alternatives to shipping goods now that Aloha Airlines Cargo has shut down.

Aloha dominated the interisland cargo business, flying about 85 percent of the cargo between Oahu and Kauai, Maui and the Big Island. As of Tuesday, none of its competitors had committed to trying to fill the gap.

Aloha’s biggest customer, Love’s Bakery of Honolulu, resorted to sending its baked goods on Delta Airlines to Los Angeles, then loading the goods aboard direct Delta flights to the Neighbor Islands.

While state leaders said they were exploring options, no one had a plan.

Someone WILL step in to fill the void- but it will take time.

Love’s Bakery said, for now, it’s eating the costs of flying its bread through LAX on a 16 hour journey to the other islands. So the bread is flying Delta to Los Angeles and then flying to the other islands that Delta flies direct. The company said it wasn’t going to disappoint customers after being in business since 1851. (Now THAT’S customer service.)

But if someone doesn’t act fast, how long can the company keep paying those costs to ship its bread?

Hawaii’s Congressman has called on the Governor to declare a state of emergency so military aircraft can be used to transport the cargo. Governor Linda Lingle rejected that proposition. From the Biz Journal:

“We are particularly focused on ensuring that critical supplies relating to health and safety continue to be transported uninterrupted,” Lingle said in a statement. “At this time, there is no indication that any critical supplies are not being shipped and delivered in a timely manner.”

Lingle, a Republican, also said she has rejected U.S. Rep. Neil Abercombie’s request that she declare an emergency or disaster, enabling the use of military aircraft to ship goods. Abercrombie is a Democrat who represents Honolulu.

“While I appreciate his concern, I have no plans to request an emergency declaration, and I believe his alerting the Secretary of Defense, Secretary of the Army, Secretary of the Air Force, TRANSCOM, USARPAC and PACAF is an overreaction,” Lingle said.

Aloha Airlines isn’t the only airline in trouble. What if United, American and Delta stopped flying to the cities on the mainland that aren’t profitable? Maybe there won’t be flights to parts of Nebraska anymore. Say bye-bye to most of the Dakotas. Maybe you won’t be able to fly into parts of Kansas or Utah.

But more than just the passengers, how does the freight get there?

Keep an eye on Hawaii. The longer the cargo isn’t running there, the more stresses on the economy. This isn’t the last we’ve heard of this.

And all because of one little ole airline.