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Aloha Airlines Files
for Chapter 11
Bankruptcy
On March 21, 2008,
Aloha Airlines filed
and received U.S.
Bankruptcy Court
approval to continue
operating under
Chapter 11 of the
U.S. Bankruptcy
Code. Bankruptcy
protection will
provide the airline
with the opportunity
to restructure and
reduce its debts
while continuing
day-to-day
operations. The
Court has also
authorized Aloha to
honor existing
reservations and
tickets. Additional
information can be
found
online.
The Airlines
Reporting Corp.
(ARC) will continue
processing Aloha-validated
transactions
without
interruption. When
selling the services
of a supplier in
Chapter 11, travel
agents should advise
clients to pay by
credit card. Under
the Fair Credit
Billing Act, credit
card customers have
certain rights to
refuse to pay
charges for services
not rendered.
Details of the act
can be found on the
Federal Trade
Commission's
Web site.
ASTA members can
access a white paper
on airline
bankruptcies
here. |
