A labor dispute is threatening the sale of the air-cargo operations of Aloha Airlines, the bankrupt Hawaii carrier which shut down its passenger flights on Monday.

The company was in federal bankruptcy court Tuesday seeking an injunction against the Air Line Pilots Association, charging the union is threatening to "disrupt or stop its cargo operations," the Honolulu Advertiser reported.

No ruling was made after the airline and union agreed to try to settle the issue.

The airline is continuing to operate its air-cargo and contract services operations while it arranges a sale.

Aloha is the largest air-cargo company in Hawaii with about 85 percent of the market, the newspaper reported. It operates 30 cargo flights a day and employs about 400 people, including 30 pilots.

Cargo pilots, who aren't being laid off, say their contract gives senior pilots the right to choose which routes they fly. The company said that pilots bid on cargo routes more than a month ago and the routes would not be re-bid, according to the newspaper.

The paper reported two more potential bidders have expressed interest in the cargo division.

Castle & Cooke, based in Van Nuys, Calif., is headed by Dole Food Co. Chief Executive David Murdock, and provides services for private jets.

Kahala Capital is an investment firm that includes Aloha Airlines director Richard Ing, and specializes in distressed companies.

Last week, Seattle-based Saltchuk Resources, the parent company of Totem Ocean Trailer Express and a partner with Taino Star Investments in Sea Star Line, signed a letter of intent to acquire the cargo unit for $13 million.

Journal of Commerce