HONOLULU — Members of Aloha Airlines Federal Credit Union are proving to be a resilient lot even after nearly 1,000 of them lost their jobs when Aloha Airlines closed its doors for good on March 31.
Through its member assistance program, which offers a number of transition options for displaced employees including crisis loans, lines of credit and easing of withdrawal penalties, most members have requested loan deferments, said Doug Mashino, credit union spokesperson. Aloha Airlines FCU serves nearly 4,600 members.
"Many are optimistic about finding jobs. We're trying to take some of the burden off of them so that they can focus on other things like looking for another job," Mashino said.
Recommended For You
Citing rising fuel costs and other operational issues, Aloha Airgroup, the parent company of Aloha Airlines Inc., closed shop on March 31 less than two weeks after filing for bankruptcy for the second time in three years. The carrier, along with ATA Airlines and Frontier Airlines, was one of several that shut down in March. Aloha Airlines FCU served its primary sponsor for 52 years.
Mashino said one of the biggest concerns among laid off members has been continuing their health care. Because Aloha Airlines was dissolved, the provisions under the Consolidated Omnibus Budget Reconciliation Act, or COBRA, do not necessarily kick in, he explained. COBRA gives workers the rights to continue group health benefits provided by their health plan for a limited period of time. As a result, some are scrambling to find other coverage. The Hawaii Medical Service Association, an independent licensee of Blue Cross and Blue Shield,
extended COBRA coverage until June 1. The state's largest insurer has also received approval from Hawaii's Insurance Division to develop and offer an extended benefit program with coverage continuing until Dec. 31.
"In hindsight, it might be something we can focus on–not necessarily offering health care insurance–but it might be something we can look at as we focus on our future plans," Mashino said.
The credit union had until the end of April to use the Aloha Airlines name but that has been "pretty fluid" given the carrier's current case in bankruptcy court, Mashino said. Meanwhile, early discussions have already started on Aloha Airlines FCU's new image and brand. More concrete plans are tentatively scheduled to be in place by the summer.
"We still have plans to change our name but we just haven't formulated what it will be, Mashino said. "We're still in the process of figuring out the market we're planning to serve."
Outside of the credit union's walls, the community has rallied around Aloha Airlines' displaced workers. Honolulu recently hosted a downtown block party to raise money for former employees, Mashino said. Dave & Buster's, a restaurant and entertainment venue, put together a family fun night and fundraiser.
Still, some members are opting not to stay in Hawaii. Some have moved to China, which has a huge need for aviation professionals, Mashino said, adding the credit union has lost a few of it members this way.
Overall, morale among credit union staff and members continues to be optimistic, considering the circumstances.
"It's been pretty positive," Mashino said. "The big point is we do have a plan [on the credit union's new direction]. It will probably take another month.
There is still continuity" with the credit union's
operations.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
