Every company is bound to face challenges and problems throughout its existence, and Aloha Airlines Company is no exception. They have faced many challenges, and there have been more road blocks than most people would expect to encounter. One of the most crippling of these challenges faced by Aloha Airlines was the Aloha Airlines Bankruptcy Case, which was filed for on March twentieth, during the year of two thousand eight. There are many causes that ultimately lead to the bankruptcy of this Hawaiian airline, but in the end it doesn’t truly matter what caused the financial struggles—the end result will always remain the same.
During the early 2000s is when the Aloha Airlines Company first started to reach their financial crisis. Although it was only a minor struggle at first, it quickly became clear that it was going to be a major battle. The fuel for their airplanes was constantly increasing, so they were being forced to charge even more for tickets to travel with them—as expected, this will cause a decrease in business, because no one wants to spend more. To add to this problem, they needed to upgrade their planes and their other equipment. Because they were already financially struggling, this became a huge problem for them, and they quickly began to go downhill.
The issue that caused the biggest impact, however, was far out of their control, more so than the other factors ever could have been. The terrorist attack known as 9/11 happened, putting the entire country at a standstill, and devastating the cost of fuel, parts, and nearly everything else that anyone had to buy. The price of everything skyrocketed, causing their economic troubles to send them even lower and lower than they had already been. It didn’t take long before they sank as low as it gets.
On March 20th of 2008, Aloha Airlines was forced to file for bankruptcy, and they started cancelling their flights from the next week until the end of the time that they had been scheduling for. After they went out of business, an auction was held to get rid of all of the planes, cargo, airports, and various equipment that was left behind. In particular, one of the things that sold for the highest amount was the name and branding information, which prevented the original owners from ever being able to associate themselves with the company again.
Thousands of people lost their jobs because of this, while other companies and people got promotions and improved their businesses with the new planes, cargo, and brand names that they bought at the auction. Now, the Aloha Airlines Company has opened again under new management, despite the previous owners trying to buy back their old brand rights. After the Aloha Airlines Bankruptcy Case, however, they lost all rights to the brand, and the airline has been under new management ever since. The airline is currently doing well and is increasing air traffic regularly—with locations all over the world, they are considering opening new locations and destinations elsewhere as well.