Reported by Star-Bulletin staff & wire
Monday, January 26, 1998
Judge orders Mahalo Air liquidated
A federal judge today ordered the sale of what's left of Mahalo Airlines Inc.'s assets and put the defunct airline into a Chapter 7 liquidation.Bankruptcy Judge Lloyd King briefly considered one offer to buy the defunct airline's operating certificate, from an airline investor group represented by a former Mahalo vice president, Doug Caldwell. But King agreed with attorneys in the case that the offer, contingent on federal approval, had too many uncertainties.
Mahalo, which started flying in 1993, has been in Chapter 11 bankruptcy since last July and stopped flying Sept. 2.
The remaining assets -- some aircraft spare parts -- will be sold to a mainland firm that will pay $20,000 in advance, pay freight to the mainland and give the bankrupt estate 75 percent of what it gets from reselling them. A representative said the sale should bring in at least $175,000.
50 meetings booked for convention center
The Hawaii Visitors & Convention Bureau says it now has 50 confirmed bookings for conventions and meetings at the Hawaii Convention Center.The meetings are expected to generate more than $1.2 billion in expenditures in Hawaii and will raise more than $93 million in new tax revenues, according to HVCB and state officials. One of the latest to book is the American Health Care Association, which will hold its annual convention Sept. 24 through Oct. 1 in 1999, bringing in more than 3,100 people.
Formal opening ceremonies for the $350 million convention center are set for June 11-13.
Northwest Air takes stake in Continental
HOUSTON -- Northwest Airlines Corp. is forming a global alliance with Continental Airlines Inc. that will stitch together the route networks of the nation's fourth and fifth biggest airlines, Continental said today.Northwest will pay $519 million in cash and stock for the 14 percent stake in Continental now owned by Air Partners LP and controlled by investor David Bonderman, who bailed Continental out of bankruptcy. However, the stock will be placed in a trust and will have no voting power, unlike the 51 percent voting control that Bonderman's group has.
Both airlines are important to Hawaii since they fly between the mainland and the islands as well as between Hawaii and Japan. No information was available early today on what impact, if any, the alliance would have on Hawaii service.
The deal calls for the companies to link their route systems and have Continental cooperate with Northwest's trans-Atlantic partner, KLM Royal Dutch Airlines. The pact is subject to government approval.
Houston-based Continental is the nation's fifth-largest airline, while Northwest, based near Minneapolis is fourth.