When lowfare carrier go! launched service in Hawaii with $19 fares, many people were saying that in the end it will drive other airlines to bankruptcy while go! would never make any money. Those people were correct. go! has been losing money and, for the 2nd time in 3 years, Aloha Airlines has declared bankruptcy. Aloha mentioned high fuel prices, but really blamed the bankruptcy on go!
The carrier says they hope to keep their 3,500 staff on the payroll, but they will have to seriously cut costs if they hope to be able to compete long-term.