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Aloha Leaves April Fools
By JD Bluefield | March 30, 2008
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There will be no joking around this April 1st for Aloha Airlines employees and customers. According to Business Week, Aloha will be running its final inter-island flights Monday, March 31st and halting all passenger flights Tuesday, April 1st. This shutdown will immediately affect 1,900 of the 3,550 Aloha Airlines employees. Although its profitable cargo unit will be sold off, no buyer or creditor has emerged to lift Aloha with future financing. Aloha suggests contacting your credit card issuer or travel agent for a refund on tickets/reservations purchased in advance. Unfortunately, if you have purchased in cash or check they say you may need to file a claim with bankruptcy court.
How does this affect you? Well, besides the obvious 1,900 employees “affected”, there will be many more who have already purchased tickets or are holding onto frequent flier miles.
Rescheduling your flight: United and Hawaiian Airlines have quickly responded to offer aid to those scheduled to fly on canceled Aloha flights. I imagine they will be offering standby or discounted fares. The numbers listed for help with accommodation options are:
- United: 1-800-UNITED1
- Hawaiian: 1-877-892-8896
Getting a refund: If you want your money back, I hope you purchased with a credit card or a travel agent.
- Most credit card issuers will refund money on “undelivered goods,” but there are many restrictions and you should call immediately to find out what they are. In some states, if you have already paid off the bill in full, they will not “chargeback” the purchase. They take that as validating the purchase.
- You may be able to get things worked out through your travel agent depending on the contract you signed. “What did that fine print say again?”
- If you purchased your ticket with cash or check, Aloha suggest filling a claim with the bankruptcy court. Sadly, I wouldn’t hold my breath. Filing with bankruptcy court pretty much means you’re S.O.L. because individual creditors like customers will be last on the list of those paid back. If you get anything back, consider it a win. After a company I worked for went bankrupt, 3 years later I received my check for unpaid wages. It was somewhere around 20 cents on the dollar, but I still cashed that $7.75 check.
Redeeming AlohaPass Frequent Flier miles: United has said that tickets booked with AlohaPass frequent flier miles will still be honored. As for any points you’ve accumulated, I think they’ve just become the 1980’s Argentinian Peso… worthless. This is just my opinion, but if I had accumulated miles, I would attempt to burn them immediately at Aloha’s mileage redemption page. If you live in Hawaii there is much more to choose from, like a weekend hotel stay, car rental, etc. For those on the mainland, you may have to settle for some Aloha logo’ed tee’s or caps. On the upside, some have said these will become collectible like PAN-AM tote bags. I highly doubt it, but if you have anything, log into that eBay account while news is abuzz!
Aloha Credit Cards: Again, since the mileage accumulating on these cards will probably become worthless and banks will probably close the accounts, I’d start looking for another “go-to” credit card. This is one reason why I always lean towards cash-back credit cards versus mileage. The cash-back benefits are usually received upfront on an annual basis so they don’t linger for years. Also, airlines constantly raise mileage redemption rates or shorten expiration time spans.
Good luck to all Aloha employees and anyone affected by this issue! Oh, and if you do have extra miles, I’d go for that Aloha Funbird Model Airplane.
Topics: Personal Finance, Travel |
2 Responses to “Aloha Leaves April Fools”
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March 30th, 2008 at 9:38 pm
You would think that 1900 employees would be smart enough to figure out one simple thing. If I take a pay cut or buy into Aloha, then Aloha can compete and I would still have a job, less pay, but a job.
April 1st, 2008 at 12:11 am
It is a shame that the finger always points away when looking for a solution.