Darwinism at Work

-Aloha Airlines 1946-2008-

Another icon in American airline history has passed from the scene.  Founded in 1946 with a single, used C-47, (DC-3) by publisher Ruddy Tongg as Trans-Pacific Airlines, his little airline grew to operate 27 B-737's to 11 destinations in the Islands and on the mainland.   

Al, from Aloha Airlines

On Sunday evening March 30, I was scheduled to depart Honolulu for LAX as NWA 802 at 2220 with FO Bill Dreyer.   When I awoke at 1945 from my afternoon nap, Aloha's demise dominated the news and conversation in our hotel lobby.   They'd declared bankruptcy just ten days earlier on March 20, but surprised most everyone by announcing cessation of operations effective tomorrow, March 31.  Just prior to pushback, a HNL gate agent rushed into the cockpit to ask if we had room for an Aloha pilot.  All 225 passenger seats were occupied, including our flightdeck jumpseat; but of course send him down, we'll find space.  Daniel, an NWA flight dispatcher, already seated with his gear stowed, volunteered to move back to a Flight Attendant jumpseat to make room for our Aloha friend.  This was no small sacrifice on his part, giving up a "relatively" comfortable, private seat in the cockpit, for a bench seat for more than five hours.  Thanks Daniel.  

We now met Al, (pictured above) a six year Aloha 737 First Officer, trying to find his way home to Colorado before losing his inter-airline jumpseat priviledges.   I was impressed by his positive attitude, not interested in placing blame and resigned to getting his resume out into the market.  After listening to several Aloha stories, it was apparent that he had very much enjoyed his time there.  Although a less than cheery flight for Al, who would transfer to a UAL Colorado Springs flight later, he was wonderful company as we navigated east on track R577 towards the west coast. The talk on the air to air frequency between pilots tonight, normally concerning ride information, centered around Aloha's demise.  Pilots in Delta, Northwest, United, American and ATA cockpits suddenly realize, that in this precarious economic environment, anyone of us could be next!  Individually... how well prepared are we for this possibility?

FO Bill Dreyer as we prepare to taxi out at LAX to depart 24L for HNL

 
I recall when my first airline went "belly-up" and I returned home to BOS from PHX on USAir in 1981.  Fear of the unknown, what tomorrow would bring, my mortgage, car payment and other obligations were powerful motivators.  With assistance from many friends and family, my path lead me here tonight, in command of a 757 high over the Pacific.  I succeeded in returning to an airline cockpit, to experience the wonderous things that we do.  And I'm optimistic that Al, with help from his friends and his positive outlook, will share that success.

An Aloha 737-200, pushing back from the inter-island terminal at HNL, 2007.

Aloha operated its last passenger flight on 31 March 2008, as flight number 261 from Kahuli, Maui to Honolulu.  I've learned that the airlines most senior and junior pilots were at the controls. Captain Darryll Wong, hired in 1976 and First Officer Tasha Kobashigawa, accompanied by Flight Attendants Renee Jewell, Steve Oshiro and Tori Swoish.  Nineteen hundred Aloha employees are affected by CEO David Banmillers decision to follow this course.  As idyllic as this Hawaiian paradise may appear, in airline terms it's a brutal, turbulent, bare knuckle environment.  Even before the arrival of go! Airlines. 

An Aloha 737-700 at the gate in San Diego.

Through its 61 year history, Aloha has operated DC-3's, F-27's, Viscounts, BAC One-Elevens, B-737's and DC-10's to Taipei when it started Aloha Pacific in 1984.  Taipei service lasted less than a year however.

I took this shot in 2007 from the cockpit of a Hawaiian B-717 in HNL.  The Aloha 737 at the gate is painted in a retro paint scheme that the airline called "Funbird."  Funbird, introduced in 1969, was its "flower power" livery.  This -200 model was repainted in this nostalgic scheme in 2006, to help do battle against go! airlines.  To see more photos of this livery, click on the title to this post. 

An ATA 757-300, pushing back at LAX

When it rains it pours!  As I'm writing about Aloha's folded wings, ATA has announced that they will cease service effective April 1, 2008.   This is a very interesting company.  Created as ATA Airlines, but also known as Airtram, it was founded in 1973 by George Mikelsons to operate a B-720 for Ambassadair.  This was a "travel-club" based in Indianapolis.  Mikelsons himself, flew, cleaned and loaded baggage at his single airplane airline.

An ATA 737 at La Guardia. (LGA)

By 1981, with a fleet of B-707's, ATA operated as a charter airline.  Best known for it's military charter service during the Gulf Wars and Iraq, the company expanded into scheduled service in 1990.  

An ATA 727-200 in Florida.  Anyone know where?  I've forgotten where I took this.

Through its 35 year history, in addition to its 707 and 720 fleets, the airline has operated DC-10's, L1011's, 727's, 737's and 757's.  That's the good news, the historical data or fun stuff.  Here's the reality!  ATA Holdings reorganized in 2007 as Global Aero Logistics and immediately, with the help of "hedge funds," purchased World Airways and North American Airlines.  When ATA shutdown in the dark of night and notified their 585 pilots that their services were no longer required, they transferred the fleet to World Airways.  Do you suppose that this was coincidental?  If you do, you're naive.  

1989 Aloha and 1995 ATA timetables from my collection.

Champion Air 727 departing from runway 12R, MSP

On the heels of ATA's announcement, Bloomington, MN based Champion Air announced its intention to cease operations effective May 31, 2008.  Formed in 1987 as MGM GRAND AIR, they flew a small fleet of lavishly outfitted DC-8's and 727's, on charter and over a single scheduled route between LAX and JFK.   In 1995, Front Page Tours purchased MGM's certificate and changed its name to Champion.  

A Champion 727 on the ramp at Detroit. (DTW)

In 1997, Minnesota Twins owner Carl Pohlad and Northwest Airlines bought the airline, before selling out to an internal executive group in 2003.  "Surprisingly," or maybe not, these are the same 727's that we flew at NWA.  The airline announced that the loss of its MLT contract and likely loss of its NBA contract, coupled with $110 oil made its business plan infeasible, grounding 550 employees and 16 727's.  

A Sun Country 727 in MSP, 2001

Just today, MSP based Sun Country Airlines, formed in 1982 by a small band of former Braniff Airlines employees and MLT Travel, issued furlough notices to 45 of their 156 pilots. Neighboring NWA, the nations oldest airline, announced a 5% reduction in domestic flying and plans to ground as many as 20 older airframes.  Not to be left out of the fray, United, American, Delta, and Southwest, recovering from recent, massive FAA maintenance issues that cancelled more than a thousand flights, are searching for ways to streamline their operations.  

It's now Saturday 5 April, I've checked my news ticker and guess what?  Yes, Skybus Airlines, based in Port Columbus, Ohio, shut down a little after midnight last night.  What is it with midnight?  You remember them; this is the outfit who offered at least 10 seats on every flight at $10!  Uh huh, and they wonder why they succumbed.  Fidelity, who manages my 401-k was a major investor here.  Hmmm... I hope my portfolio manager there has better sense than this.   Skybus operated a fleet of 12, A-319's with 63 more on order with 450 employees, for the last 11 months.  Apparently something was amiss two weeks ago, when CEO Diffenderffer (yes, I spelled it correctly) suddenly left to write a book.  The handwriting was on the wall; at least for him anyway! 

UPDATE: Friday, 11 April 2008.  Add Denver based Frontier Airlines and its 62 aircraft to the bankruptcy list, while Milwaukee based Midwest Airlines announced a 9% pilot furlough.

In 1859, English born naturalist Charles Darwin wrote, "On the Origin of Species."  He wasn't an airline pilot; in fact no airlines existed during his lifetime.  But his theories concerning "natural selection" and "survival of the fittest," apparently aren't solely directed at "living organisms." His (then) controversial arguments are as applicable today, concerning business and those who attempt to run them.  And speaking about survival of the fittest and natural selection, I need to start studying for my Annual Training Event next month.  In this Brave New World though, very little actual training occurs!

For aspiring airline pilots who read my Ask the Captain column on my website, these events illustrate why I strongly urge you have a back up plan, an alternative to your airline career. What will you do tomorrow when your airline shuts down abruptly at midnight tonight?  The time to think about this was last year, not while you're standing in the unemployment line tomorrow.  Most think that what we're experiencing is something new; but if you know the history of our industry, you'll understand that the winnowing of the airline business has been in effect since its inception in 1926.  Ask those from Ludington Airways, Colonial Airlines, Pan Am, TWA, Braniff, Air Florida, Air Atlanta, ProAir, Midway, Independence Air, Eastern Airlines and Kiwi. 

Are you old enough to remember E.L. Cord, Francisco Lorenzo or Carl Icahn?  These are just a few of the scoundrels to have passed through our industry.  Unlike, Pat Patterson, C.R. Smith, Captain Eddie, Francis Higgins, Hal Carr, Ruddy Tongg, Stanley Kennedy, and Don Nyrop who created something of value, they produced nothing, but profited handsomely.  To learn more about our fascinating history, how we got here and where we're headed, these two well researched books may be of interest to you.   

As usual, thanks for reading and commenting.

Rand