Exits Chapter 11

Perhaps 2006 WILL be a good year for the airlines, after all. Fulfilling the promise made earlier this month that financial solvency was within its grasp -- and on the heels of a similar move from United Airlines -- Hawaii's Aloha Airlines formally exited Chapter 11 bankruptcy protection last week.

"Today, the 60-year-old tradition of Aloha Airlines has been reborn with a renewed commitment to serve the interisland and trans-Pacific markets with the finest and friendliest service in the sky," said David Banmiller, Aloha's president and chief executive officer.

"Aloha Airlines is now a 60-year-old start-up company with a low-cost structure," added Banmiller.

The airline, which entered Chapter 11 on December 30, 2004, was able to exit bankruptcy only after fierce cost cuts, including two rounds of employee concessions that will help the airline save $75 million annually. The carrier also received help from investment group The Yucaipa Companies, which assumed financial responsibility for Aloha in September 2005.

Under that deal, Aloha received a $63 million investment from mainland and local investors, according to the Star-Ledger, as well as a $15 million term loan from GMAC Commercial Finance. GMAC is also providing Aloha with a $20 million revolving line of credit.

FMI: www.alohaairlines.com