A federal judge today finalized the sale of Aloha Airlines' contract services division to Los Angeles-based Pacific Air Cargo.

The deal will preserve 1,100 workers who handle ticketing, baggage services, ramp duties and other ground services for airlines that serve Hawai'i.

The sale had been in question when Aloha on Monday converted its bankruptcy reorganization into a Chapter 7 liquidation.

Pacific Air agreed last week to pay $2.05 million for the contract services division, which continued to operate despite a court-order allowing Aloha to wind down its operations and sell off its assets.

U.S. Bankruptcy Judge Lloyd King also held a hearing today on Aloha's recently revived attempt to sell its air cargo operations to the parent of Young Brothers/Hawaiian Tug and Barge. King will hold further hearings this afternoon on the matter.