Aloha Air Cargo Authorized to Expand Fleet by US Department of Transportation

The US Department of Transportation (DOT) has approved an expansion for Aeko Kula LLC, doing business as Aloha Air Cargo (KH, Honolulu), increasing its authorized fleet from five to seven large aircraft. This adjustment permits the airline to operate aircraft with either more than 60 passenger seats or a maximum payload capacity of 18,000 pounds, according to findings by ch-aviation.

This fleet expansion comes alongside a significant amendment to Aloha’s interstate certificate authority, which previously mandated that the carrier remain a wholly-owned subsidiary of Saltchuk Aviation. The amendment marks a pivotal development since the airline’s restructuring period following its 2008 Chapter 7 bankruptcy and the Chapter 11 bankruptcy of its then-parent company, Aloha Airlines. Shortly after these bankruptcies, Seattle-based Saltchuk Resources acquired the cargo division for $10.5 million.

In its application filed on January 31, 2023, Aloha Air Cargo argued for the removal of these operational restrictions, highlighting its unique role as the only Part 121 air carrier authorized to transport intra-Hawaiian mail for the United States Postal Service using large aircraft. The constraints had previously forced the USPS to resort to less efficient methods, such as transporting mail between islands by boat, due to the airline’s limited capacity.

The DOT recognized Aloha Air Cargo’s long-term operational stability and financial health in its approval, noting the airline’s 16 years of experience operating large aircraft. The carrier reported a substantial net profit of approximately $25.8 million on revenues of $147.5 million in 2023, and continued strong performance with a net profit of $2.9 million on $32.4 million in revenue in the first quarter of 2024.

The current fleet composition of Aloha Air Cargo includes one B737-300(F), three B737-300(SF)s, two B737-400(F)s, and two B767-300ER(BCF)s. These B767s are wet-leased from its sister company, Northern Air Cargo (NC, Anchorage Ted Stevens), which is also under the Saltchuk Aviation umbrella, along with other subsidiaries like Ryan Air Alaska and StratAir.

This fleet expansion by Aloha Air Cargo is set to enhance its cargo capacity significantly, directly impacting its ability to meet growing demands and improve logistical operations across the Hawaiian Islands.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com