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Lawmakers Discuss Saving Airlines

Some Blame Lingle Administration For Aloha's Collapse

POSTED: 4:40 pm HST March 31, 2008
UPDATED: 6:05 pm HST March 31, 2008

At the state Capitol on Monday, lawmakers and the governor talked about saving Aloha Airlines.

Lawmakers tried to offer a tax break on fuel and loan guarantees in hopes of making potential investors more confident that the airline could be saved.

However, after the bankruptcy court decided to let the airline shut down, the focus turned to helping the employees and finger pointing.

Even as lawmakers passed a fuel tax cut bill that could benefit Aloha and Hawaiian airlines, lawmakers were asking why the governor did not complain about go! Airlines' effort to undercut Aloha into bankruptcy.

"I think that the governor and the state Department of Transportation should have been jumping all over the predatory practices," Sen. Rosalyn Baker said.

Aloha's boss said he tried to give the governor the same message.

"This train's been coming down the track that I talked to governor about for two years -- everybody at state, everybody federal, and all of a sudden at the last second, 'Hey, let's help,'" Aloha Airlines' President and CEO David Banmiller said.

The governor said there had not been enough evidence to prove a federal predatory pricing case. She expressed suspicion that Aloha was hiding assets, closing down in bad faith and blaming everyone but itself.

"We were never convinced you could make a case of predatory pricing, or unfair practices, or anything like that," Gov. Linda Lingle said. "To talk about the price of fuel and go entering the market those are two factors, but management decisions are also factors."

The governor said she had heard from potential investors and said she was suspicious Aloha may have the ability to stay in business another month. She said Aloha violated the state plant-closure law, so employees could be eligible for up to 90 days of pay and benefits.

Even if Aloha did violate the notice requirement, it remains up to the bankruptcy court to decide how much money the employees get. They have to line up with other people who are owed money.

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