Maui Log

The sad tale of Aloha Airlines continued on Monday with the announcement that it’s profitable cargo division has been shutdown.

Reportedly, Aloha Cargo’s principle financier, GMAC, decided not to provide further credit when Jupiter Holding Group, the high bidder for the cargo division, backed out of the bidding. Jupiter Holding Group, which had bid $13.65 million, said it backed out because the asking price had been raised to $15 million.

The move left officials scrambling to find alternative means of shipping the state’s air cargo and mail. Aloha transported 85 percent of Hawaii’s interisland air cargo and all mail from Maui and the Big Island.

Love’s Bakery, which shipped 36,000 pounds of goods daily on Aloha Cargo, managed to get it’s shipment to the Big Island by sending it to LA on Delta Airlines and putting it on a Kona bound plane there. It had already begun shipping to Maui on the Superferry.

Only last week the Airline Pilots Association threated to file suit against Aloha Cargo over which of Aloha’s pilots would fly the cargo runs. Aloha wanted to continue using the current cargo pilots, while the APA demanded that seniority be used to pick them.

At this point it looks like Aloha is flying off into the sunset for good.