Aloha’s CEO visualized exit from bankruptcy
Tiny Aloha Airlines last month emerged from bankruptcy protection, the latest in a long line of U.S. carriers to reorganize.
Saddled with tough competition and high fuel prices, the carrier filed for Chapter 11 on Dec. 30, 2004.
A month before filing, the company hired David Banmiller, a 30-year industry veteran, as its CEO to oversee the reorganization. Banmiller had been COO of Air Jamaica. Earlier in his career, Banmiller had overseen bankruptcies at Pan Am and Sun Country Airlines.
During its bankruptcy stint, Aloha shed pension programs by handing them over to the government insurer, cut employee pay and reduced flying capacity by 20%. It also eliminated $65 million of debt and $75 million in annual operating expenses. It kept nearly all of its jobs.
Privately held Aloha told the bankruptcy court that it made a slim profit — before interest, depreciation and taxes — in 2005 and expects to be slightly more profitable this year.
Yucaipa, a private equity fund controlled by billionaire Ron Burkle, provided most of the money for Aloha’s exit from bankruptcy. It now owns 67% of its shares. Banmiller recently spoke with USA TODAY’s Roger Yu about bankruptcy in the airline business and the experience of his own carrier. Comments have been edited for length and clarity.
Q: Critics of bankruptcy such as American Airlines CEO Gerard Arpey and Alaska Airlines CEO William Ayersay weak carriers get an unfair advantage from Chapter 11.
A: I know there’s controversy about the relative merits and fairness of bankruptcy, but it’s designed for a reason. We saved 3,500 jobs. We drive the economy in Hawaii. We carry the mail and about 85% of the cargo between the islands. We tried to hurt as few people as possible, but people are going to be affected in bankruptcy.
Related Articles
Medical malpractice case settled
A million dollars arzthaftungsrechtlichen case of a resident to Guam Army Medical Center in Hawaii was released after the parties agreed to reach a solution. However, the amount of urbanization was not disclosed in the agreements signed, the lawyer for the claimants Florencia Lewis and Assistant US Attorney Mikel Schwab. As part
Opening of adoptive parents for the adoption records.
Parents of adopted children in New York are an overwhelming majority in favour of laws with which adult adoptees access to information in their birth certificates birth of their parents, according to a new study from Cornell."An important argument for retention of records is sealed protection of adoptive parents, perhaps
Adoption assistance programmes to the employer a great opportunity.
Do you know someone has a child? If so, you probably know, that adoptions can be costly. Although it is perhaps not typical of an adoption, the costs can easily exceed $ 10,000. A tax legislation in force in 1996 and expanded in 2001, encourages employers sustain personnel, adopt children
Defendant Told Police He Only Heard Therapist Scream
Man charged with murder Upper East Side, a psychotherapist with knives and a meat Smooth leaf, February 12 detectives said he heard screaming, but he did admit that he had killed, according Court documents published Tuesday. The man, David Tarloff, said he "did not know what happened" for Dr. Kathryn Faughey
The Macon Telegraph, Georgia, Mike Billips column.
The flowers bloom, birds are to discuss it after the murder of land against bugs, travel and the evolution of fraud cold advice on family holidays. What? You say you're not familiar with, during the last precursors? To find out more. According to the Federal Trade Commission fraud false travel, often
6,000 pilots of Delta Air Vote to Strike
Nearly 6000 drivers in the Delta Air Lines, as resistant to a second round of concessions, voted by an overwhelming majority in favour of approving the strike should their contract invalid by arbitration, pilots, " said the union. The group expects that a decision of 15 April. The pilot's decision gives
Auto-insurance quality of intelligence concerns in Florida.
Gonzales-Avel costly received a shock, he went as procurement opportunities for auto insurance recently.The famous enterprises from 31 years Hypoluxo finance manager far, and some annual premiums quoted him as high as $ 2000. The reason: His bad credit history. Gonzalez said his model of late payment of bills of credit
I. D. Vol puts more time in prison
In January, Ricardo Rodrigues uses a credit card, he receives with personal data stolen from a fall and ran up $ 17,000 worth of fraudulent charges. Yesterday, it was the first man sentenced to Hawaii in the new countries strengthens the identity theft of the law, bedbugs two years deprivation of
Sense of Crunch
Hawaii's Workers' Compensation system has been a hot topic in recent months - although the system has been in the area of radar for some time. A recent study by the Oregon Department of Consumer and Business Services (ODCBS) Hawaii found that workers' comp premium rates are the third highest
The Internet offers the full range of products Hawaiian
E-tailers, a new generation of entrepreneurs, the revival of retailing before online shops offer everything that Aloha shirts provides local snacks and hula. The virtual business approach was the model for young leaders of big ideas, but too little capital to finance a traditional disk."You see a ton of them, opening