Aloha Air replaces
CFO, posts loss

Aloha Airlines, which announced yesterday it has hired an interim chief financial officer, posted an operating loss of $3.8 million in April that exceeded its operating loss in the first three months of the year.

The carrier's revenue dropped nearly $6 million to $35 million in April from March, partly because Easter and spring break occurred in March this year.

Aloha's operating loss in April was about $57,000 more than the airline's first-quarter loss. In March, Aloha had an operating profit of $3 million.

Meanwhile, Jeffrey Kessler, a partner with Atlanta-based Tatum CFO Partners LLP, joined Aloha on Monday to replace former Chief Financial Officer Jim Clarke, who left the company on Friday. Aloha said Clarke resigned. Clarke said Aloha told him on Friday that it was his last day.

Initially, Aloha said Clarke's interim replacement would have the title of chief restructuring officer as well. But Aloha said yesterday that Kessler will not have that title.

Kessler has more than 21 years of financial operations experience, primarily in helping bankrupt companies. He will report directly to David Banmiller, Aloha's president and chief executive, and will be responsible for the airline's day-to-day financial functions. Aloha will search for a permanent CFO.

"We are fortunate to have Jeff join our finance team," Banmiller said. "With his specialized expertise in restructuring, Jeff will be a tremendous asset in helping Aloha move ahead with its reorganization plan."

Tatum CFO Partners, a subsidiary of Tatum Partners, was founded in 1993 to provide financial leadership to companies needing help.

Before joining Tatum, Kessler was managing director for turnaround firm Partners for Corporate Renewal Inc. and chief financial officer of Associated Grocers Inc., an ailing $1 billion food distribution cooperative in Seattle. At Associated Grocers, Kessler was instrumental in restructuring more than $250 million in debt held by 20 creditors and negotiating more than $93 million in new financing.

Aloha's net loss in April ballooned to $12.2 million, partly because of costs associated with its new financing.

The carrier's operating expenses increased 3.1 percent to $38.8 million from $37.6 million in the previous month. The privately held airline didn't release comparable figures for the year-earlier period.