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To: Moominoid who wrote (119149)	4/29/2008 10:20:25 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

credit crunch? fuel crunch? or both? m.honoluluadvertiser.com Hawaii loses 85% of air cargo capability BY RICK DAYSOG Advertiser Staff Writer April 29, 2008 07:06 AM img View Full Story Hawai'i's economy, reeling from the loss of thousands of jobs with the demise of Aloha Airlines' passenger service, the closure of Molokai Ranch and NCL America's decision to pull out two of its ships, now faces the loss of a vital transportation link with the shutdown of Aloha's cargo operations. Aloha abruptly closed its profitable air freight business yesterday after its lender, GMAC Commercial Finance LLC, cut off financing. The shutdown means the loss of 300 jobs and the end of a business that handled more than 100 million pounds of cargo each year - about 85 percent of all goods flown between O'ahu and the Neighbor Islands. The impact will be felt by retailers and wholesalers of time-sensitive consumer items such as baked goods, produce, meat, medical supplies, newspapers, auto parts and construction materials. The move also will affect movement of interisland mail and the flow of cash between local banks and their Neighbor Island branches. "This is a critical link in the state economy," said Leroy Laney, professor of economics and finance at Hawai'i Pacific University. "The shutdown will definitely impact the local economy, and with medical supplies, it could lead to life or death situations." Gov. Linda Lingle said in a news release that she has had discussions with other cargo operators to find shipping alternatives since Aloha filed for bankruptcy. Maui Mayor Charmaine Tavares said the impact will be especially hard on local entrepreneurs and farmers who rely on Aloha's daily service. "I am concerned for both the employees of Aloha Airlines cargo as well as for the many small businesses that will be impacted," Tavares said. Founded in 1946, Aloha was the state's second-largest airline until it shut down its passenger service on March 31 and terminated 1,900 employees. The closing came 11 days after Aloha filed for Chapter 11 bankruptcy reorganization. Aloha said it lost $120 million in two years because of soaring fuel prices and a costly interisland fare war. Yesterday, Aloha flew its final two afternoon cargo flights. The company canceled six nighttime cargo flights. Aloha said last night that it was in the process of informing cargo employees about the layoffs. The shutdown could also jeopardize the sale of Aloha's 1,100-employee contract services division to Los Angeles-based Pacific Air Cargo.