Aloha pilots' union OKs 10 percent pay cuts

By Kelly Yamanouchi
Advertiser Staff Writer

Aloha Airlines pilots' representatives ratified a new labor agreement over the weekend, including 10 percent pay cuts, bringing the airline another step closer to securing final approval for a $40.5 million federal loan guarantee.

The Air Line Pilots Association, which represents about 278 Aloha pilots, was the last of four unions to ratify the concessions.

Aloha Airlines had asked all of its roughly 3,000 employees to take pay cuts to save $37 million during the next three years in an effort to get the federal loan guarantee, which was given tentative approval Nov. 5.

Officials with the airline said yesterday that they hope to secure final approval of the loan guarantee as early as Friday, pending financial arrangements with lenders, lessors and shareholders.

The pilots union approval came after the union's three-member Master Executive Council decided to approve the pay cuts by a unanimous executive vote, rather than ask all of its members to vote.

Spokesman Steve Brenessel said pilots informally voiced their support after an earlier presentation about the pay cuts. "We're very happy to help the airline, and their success is our success," Brenessel said.

The Transport Workers Union, Association of Flight Attendants and International Association of Machinists each ratified the pay cuts in membership votes last week. Aloha Airlines' officials said all wage concessions are set to take effect Jan. 1.