The dire news of the loss of Aloha Airlines, which is set to abruptly end its passenger service today, is troubling on many fronts.

As the state's second-largest interisland carrier and an important lifeline for Isle residents, Aloha, which has flown interisland for 61 years, had a substantial share of the market. The airline operated 700 interisland flights and another 120 flights to the Mainland weekly. Aloha's departure will leave residents with fewer options — and almost certainly higher interisland fares.

And one of the more painful questions centers on the airline's 1,900 employees affected by the closure, who saw their jobs literally vanish overnight. This at a time when the national economy is struggling. Hawai'i, too, is showing signs of rising foreclosures that point to more economic woes on the horizon.

The state should do what it can to help these employees left in the lurch. So it was good to see Gov. Linda Lingle step in and ask the bankruptcy court to ensure employees' rights are protected, and that Aloha provides its workers with sufficient time and notice. Lingle also is asking the court to block the shutdown until the airline can show that it has exhausted all options.

Meanwhile, the state Legislature plans to continue its push to exempt interisland carriers from paying the general excise and use taxes on fuel. That bill could reach the governor's desk as early as tomorrow, says Maui Sen. Rosalyn Baker. A bill authorizing loan guarantees to help the company attract financing also is scheduled for a hearing tomorrow, she said.

"We're not ready to throw in the towel," Baker said.

Short of coming up with a large cash infusion, which the Legislature simply cannot do, the landscape looks bleak.

David A. Banmiller, Aloha's president and chief executive officer, in a letter to employees issued yesterday, said efforts to find a buyer to take over its passenger services failed, hampered by soaring fuel costs and an airfare war that made the passenger business too risky for investors. Mesa Air Group, which likely saw the airline's vulnerability, entered the market with its low-cost carrier go!, forcing fare wars that took prices as low as $1 one-way.

For now, Hawaiian Airlines plans to add 6,000 seats to its interisland schedule to fill the void. Should Hawaiian need to hire more workers, Aloha employees should get priority.

The stakes are much higher now. The state and the Legislature must take a hard look at the long-term future of interisland air travel in Hawai'i and ensure the viability of one of our key lifelines.