Aloha Air sues
Robert’s Hawaii
Aloha Airlines is suing the state's biggest tour operator, Robert's Hawaii Tours Inc., and now-defunct Trans Hawaiian Transportation, claiming they defrauded the airline out of $2.5 million worth of air tickets.
A lawsuit filed Friday in state Circuit Court says that Trans Hawaiian, which filed for Chapter 11 bankruptcy protection in 2001, failed to reimburse Aloha for interisland flight tickets provided to Trans Hawaiian to sell to its tour customers.
Aloha accuses Robert's Hawaii of complicity in the "scheme," citing its close ties to Trans Hawaiian.
Trans Hawaiian was controlled by Scott and Mark Iwamoto, grandsons of Robert Iwamoto Sr., who founded Robert's Hawaii. Robert's Hawaii and its companies continue to be run by the Iwamoto family.
The suit names Scott and Mark Iwamoto as defendants, as well as their brother Troy, who is president of Robert's Tour and Transportation Inc., and their father, Robert Iwamoto Jr.
Officials with Robert's Hawaii did not return phone calls yesterday. An Aloha Airlines spokesman declined comment on the suit.
The lawsuit accuses Robert's Hawaii and Trans Hawaiian of mail fraud, wire fraud and racketeering activity, alleging they entered into a March 20, 2000, agreement with Aloha Airlines for the air tickets but then conspired to utilize Trans Hawaiian's bankruptcy filing as a cover to avoid reimbursing Aloha.
Trans Hawaiian was incorporated as Trans Hawaiian Transportation Inc. in 1987 as an affiliate of Regal Travel Inc. In 2000, stock in the company was transferred to Nevada-incorporated THT Inc. Later that year, Robert's Hawaii agreed to assume management of THT.
THT and its affiliates filed for bankruptcy in July 2001.
Before the bankruptcy, Trans Hawaiian and Robert's Hawaii had effectively become one entity, the suit says.
It alleges that certain Trans Hawaiian assets were "fraudulently" transferred to Robert's Hawaii for the purpose of avoiding payment of Trans Hawaiian's liabilities, including the air-ticket debt owed to Aloha Airlines.
