Hawaii's second-largest airline, Aloha Airlines Shuts Down

Hawaii's second-largest airline, Aloha Airgroup Inc., is shutting down Monday, days after filing for bankruptcy-court protection for the second time since 2004.

The closely held carrier said marketing partner United Airlines, a unit of UAL Corp., and other airlines "are prepared to assist and accommodate Aloha's passengers who have been inconvenienced." The airline said its AlohaPass frequent-flier plan will expire Monday.

The move affects about 1,900 employees.

Passengers should contact their travel agents or credit-card companies to request a refund, Aloha said. If they paid by check or cash, passengers are urged to file a claim with the U.S. Bankruptcy Court in Honolulu that is handling the carrier's insolvency, according to the airline.

The airline, hurt by high fuel costs and competition in its home market, filed for Chapter 11 late this month. The carrier offered 700 weekly interisland flights in Hawaii and 140 flights to six West Coast cities.

The extra business will be picked up by leading Hawaiian carrier Hawaiian Holdings Inc.'s Hawaiian airlines and Mesa Air Group Inc.'s Go!, a two-year-old interisland operation.

Aloha is majority-owned by Los Angeles private-equity firm Yucaipa Cos. The company had been for sale for the past year.