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Order 2008-5-17 - Aloha Air Cargo - Transferring Certificate Authority
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Aloha Airlines, Inc. and Aeko Kula, Inc. d/b/a Aloha Air Cargo Order 2008-5-17 Issued and Served May 14, 2008 Order Transferring Certificate Authority - Bookmarked By this order, we (1) find Aeko Kula, Inc. d/b/a Aloha Air Cargo fit, willing, and able to conduct interstate and foreign scheduled air transportation of property and mail; (2) transfer to AKI the scheduled cargo authority contained in the interstate scheduled persons, property, and mail certificate and in the exemption authority currently held by Aloha Airlines, Inc., subject to conditions; (3) cancel the passenger authority contained in the interstate certificate and exemption authority issued to Aloha; and (4) dismiss as moot the pendente lite exemption filed jointly by Aloha and AKI. We have reviewed pleadings in this case, including the concerns raised by ALPA that none of AKI's management, with the exception of Messrs. Engle and Coffinan, are currently employed by or have been offered employment contracts with AM, and conclude that AM offering formal employment contracts to current Aloha employees before the Bankruptcy Court approved the sale of Aloha's cargo‑related assets to AKI would have been premature considering the sale order had yet to be signed. Moreover, AKI has assured the Department that such formal employment agreements will be entered into upon approval of the sale agreement and transfer of Aloha's assets to AKI by the Bankruptcy Court. We find that approval of this transfer will have a positive effect on competition in the domestic airline industry and on the U.S. international trade market as the surviving company, with the financial support of Saltchuk, a private company with reported net profits of $83.4 million and $94.7 million in calendar years 2006 and 2007, respectively, is in a better position financially to continue the cargo operations previously provided by Aloha. In fact, absent the grant of a proposed transfer, the inter-Hawaii all-cargo air transportation currently provided by Aloha, which accounts for approximately 85 percent of the inter-island air cargo service in Hawaii, and the foreign cargo air transportation provided between Hawaii and Canada, would cease by May 14, 2008, the expiration of the company's interim financing. The transfer of Aloha's certificate and exemption authority, as described by this order, will prevent a disruption of air cargo services in Hawaii, which is critical to many local businesses and Hawaii's economy and will preserve competition in the Hawaii-Canada market and more than 200 local jobs. By: Michael Reynolds
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