Yesterday, bankrupt Aloha Airlines abruptly shutdown its interisland air cargo business. The air cargo business was profitable but GMCA Commercial Finance cut off Aloha's financing which triggered the shutdown. Aloha Airlines cargo business transported 85% of the air freight between the different airlines. The Honolulu Advertiser said:
The shutdown means the loss of 300 jobs and the end of a business that handled more than 100 million pounds of cargo each year — about 85 percent of all goods flown between O'ahu and the Neighbor Islands.
That is a huge loss in capacity. Why would GMAC pull the financing if it was a profitable operation? Take your pick: high fuel or the current credit environment. Or both.
Regardless of the reason, I think this is too much of a loss of capacity on a profitable business for someone to not step in and add a new cargo service between the islands. Let's hope for our Hawaiian friends that this massive drop in capacity is replaced quickly and doesn't hurt local businesses too bad.