There is a lot of confusion that surrounds the Aloha Airlines Company, which has been around for over eighty four years, since it was founded in the year 1929. Over the years, as it grew, it seemed as though it would always continue to grow and that no hardships would ever come to knock it down. However, that soon proved wrong, and the number of struggles that this Hawaiian airlines company had to face was multiplied. It was not long before the financial state of this company was going completely downhill, and there was next to nothing that anyone could do to save the company from the inside. A lot of different factors led up to the Aloha Airliness Bankruptcy case, and there are many details behind the story of what caused this company to go out of business in the first place.
One of the first problems that were encountered by this airline company was the rising cost of fuel for the airplanes. As the cost of the fuel increased, they would be forced to charge higher rates for their tickets to their passengers as they booked their flights for business and leisure. While this did not have a huge impact at first, it started to change over time, and their customer satisfaction started to decrease corresponding to the price of the tickets. Soon, a new problem arose: their planes and equipment were becoming outdated, and with customers paying higher amounts for tickets, it was incredibly important to have the most modern options available for them. So, in addition to having to pay for the more expensive fuel, they also had to pay to upgrade their planes, airports, and many other things located throughout the business.
When the terrorist attack 9/11 hit the price of everything increased and the number of people travelling freely decreased drastically which meant that all of the upgrades and changes that the Aloha Airlines Company just went through seemed to be for nothing. Business seemed hopeless for the company, and there was no way that they could possibly pay for all of the changes they had gone through. It wasn’t a possibility to return all of the new planes that they had bought in hopes of luring in new customers, especially after a terroristic attack involving an airplane. There really was no way to fix financial situation for Aloha Airlines, and when it was no longer covered by Bankruptcy Protection, it didn’t take long for the company to fall under.
Soon after the Aloha Airlines Bankruptcy case was settled, an auction was held to help get rid of the planes, cargo, and equipment that had previously been owned by the Hawaiian airline company. Most of these things, including the company name and brand rights, were purchased by another company who opened it up under the same name in the hopes of running it the way it had been, but better. Since the Aloha Airlines Company has been reopened under new management, a lot of the old problems have been fixed, and it is far more financially stable.