Deal set to resume Aloha cargo flights

[KamaAina]

Source: Honolulu Star-Bulletin

The parent company of Young Brothers said today it has gotten lender approval to buy the air-cargo operations of Aloha Airlines, which have been shut down since Monday.

Saltchuk Resources Inc. of Seattle was one of two main bidders for the unit, but the deal fell apart amid a dispute over terms set by Aloha’s main lender, GMAC Commercial Finance....

The company said its agreement with GMAC requires that cargo operations resume by midnight tonight.

Aeko Kula Inc., a recently formed subsidiary of Saltchuk, intends to hire out of the existing Aloha Air Cargo work force, the company said.


Read more: http://starbulletin.com/breaking/breaking.php?id=7038

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Yay! 85 percent of our interisland air cargo' coming back!!

Uh-oh, wait a minute...

First the deal falls apart, then Aloha switches from Chapter 11 to Chapter 7 and shuts down -- then the deal's back on?

What happened in the meantime?

The switch to Chapter 7 erased Aloha's union contracts, that's what. When Saltchuk says they "intend to hire out of the existing work force", they may hire the same people, but from what I hear, they won't be union.

The upshot: This is basically a lockout, sanctioned by the business-friendly bankruptcy court. It has sent small business owners, and a few large ones such as Love's bakery, into a tizzy trying to get their products shipped. And all to bust a union. Happy May Day, everyone!

[PoiBoy]

1. I think you hit the nail squarely on the head, Mr. K...

..very well said...

:hi:

[Sen. Walter Sobchak]

2. union busting?

So would you prefer the bankruptcy court liquidated the cargo business along with the rest of the airline?

Union contracts can be broken under both reorganization (Chapter 11) and obviously liquidation (Chapter 7) where the company ceases to exist. No company = no contract.

It is much easier to sell off parts of a company in Chapter 7 than it is Chapter 11, and in a situation like this where the core business has no chance of resuming opperations there is no point remaining in Chapter 11. Nobody was going to take on Aloha intact.

[KamaAina]

3. You don't find the timing a little odd?

Saltchuk's bidding, pilots' union make a little noise, Saltchuk's out.

All of a sudden, Aloha goes Chapter 7, and voila! Saltchuk's back in.

:tinfoilhat:

[Sen. Walter Sobchak]

4. They had nowhere else to go

Aloha was going to Chapter 7 as a company that had ceased opperations with no prospect for the sale of the intact business.

I doubt the airline pilots demanding retraining from a bankrupt airline to fuck the cargo pilots out of their jobs was of particular interest to Saltchuk.

[The Sushi Bandit]

5. Mahalo for the link!

This may save Aloha after all!