Aloha Airlines operated its last scheduled flight yesterday, shutting down operations after 61 years of service. The carrier, which flew both inter-island and transpacific routes, filed for bankruptcy March 20. It had not been profitable since emerging from a previous bankruptcy two years ago. It appears to be the first casualty of a fierce inter-island fare war kicked off in June 2006 when Mesa Air Group launched go!, which featured cut-rate fares. At the time, analysts predicted the market would not sustain three airlines (ATWOnline, December 2006). "This is an incredibly dark day for Hawaii," Aloha President and CEO David Banmiller said. "We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business. We had no choice but to take this action." The shutdown will affect some 1,900 employees, Aloha said. "What happened is that both sides, Mesa and Aloha, felt that the other side was close to throwing in the towel," aviation historian Peter Forman, who wrote a history of the state's airline industry, told ATWOnline. "This has not been a profitable operation for Mesa. Aloha was holding off before making an announcement. They thought that Mesa would bow out first." Yesterday, Hawaiian Airlines and go! announced they will increase service to fill the void while Aloha said it will work with codeshare partner United Airlines to assist customers. It will continue cargo and aviation service operations while a US Bankruptcy Court sorts through bids (ATWOnline, March 31). HA will add 6,000 seats and will fill empty seats on regularly scheduled flights with displaced Aloha passengers. "We are maximizing our aircraft and resources to keep inter-island traffic and cargo moving," President and CEO Mark Dunkerley said. "Hawaiian can accommodate all of Aloha's traffic." Go! will increase daily flights to 94 from 54 and will allow Aloha passengers to fly standby for no additional fee through Thursday. "We will continue to adjust our schedule to satisfy demand and work hard to provide the highest quality, lowest cost service to the people of Hawaii," Mesa Air Group Chairman and CEO Jonathan Ornstein said. by Sandra Arnoult