Spirit of Aloha | Message of Aloha | March/April 2006

Aloha Airlines— A 60-Year-Old “Startup”

Aloha and welcome aboard. If you look into this airline’s early days 60 years ago, you’ll appreciate what an enormous struggle it was for Aloha’s founder Ruddy Tongg to launch a new interisland carrier against a well-established competitor. He and his successor, Dr. Hung Wo Ching, fought hard and smart to overcome red tape and many obstacles so that their homegrown airline could serve Hawai‘i’s people in the welcoming spirit of aloha.

Over the course of the past year, Aloha Airlines was up against tough odds. Indeed, our company and employees have never faced greater challenges. This time, the struggle was to resolve the complicated web of issues that came with reorganizing an enterprise that went under bankruptcy protection at a time when the airline industry was in chaos and fuel prices were at record highs.

We rode out the turbulence and emerged from Chapter 11 in little more than a year, with the help of many, many individuals who were like-minded and united in their certainty that Aloha Airlines would again overcome all the obstacles.

Though our supporters are too numerous to mention, there are some who must be singled out for their extraordinary efforts in this achievement. Among them are our employees, who love Aloha Airlines with an extraordinary affection, akin to the feeling of being ‘ohana, or family. The members of this family came through on numerous occasions by making tough decisions and personal sacrifices necessary to keep us going. We were also fortunate to have a loyal cadre of business partners and a talented staff of extremely adept lawyers and advisers backing us up, and support from elected officials who appreciate the unique role Aloha plays in air transportation to and throughout the state of Hawai‘i. At the same time, I should mention that we are especially grateful for the assistance we have received from Hawai‘i Gov. Linda Lingle.

Our local shareholders, the Ching and Ing families of Honolulu, who have a cherished history with Aloha, stayed true to the course and stood behind Aloha’s management team throughout the bankruptcy battle. Now they have been joined in their devotion and enthusiasm by a new slate of investors who are injecting fresh capital and a new sense of excitement into Aloha Airlines. Our balance sheet going forward will be the envy of the industry.

The Aloha family is delighted to welcome aboard the Yucaipa Companies, led by the astute businessman and philanthropist Ron Burkle, and Aloha Aviation Investment Group, led by former NFL great Willie Gault. We are also pleased to have attracted a number of Hawai‘i-based investors with an excellent record of accomplishment in the Islands. Among them are Stanford Carr, Duane Kurisu, Colbert Matsumoto and Steve Yamane. Adding these new owners to the roster of Aloha’s long-standing investors, outstanding managers and dedicated rank-and-file, front-line and back-office team, strengthens Aloha’s ability to succeed in a highly competitive industry.

All of us at Aloha know that our success, in the past and in the future, depends on the satisfaction and support of our customers. We could not have gotten to this new day without you. I sincerely thank you for sticking with us and for choosing to fly on Aloha Airlines. We look forward to serving you this year and for many years to come.

Let me know how we’re doing.                                                                                                                          

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