Also today, U.S. bankruptcy judge Robert Faris said allegations of misconduct at Hawaiian Airlines are "serious," and he will decide next month whether to replace Hawaiian CEO John Adams with a trustee during the bankruptcy process.

The Honolulu-based carrier today reported a net loss of $15.1 million for the quarter ended Dec. 31, 2002, compared with a net loss of $10.7 million, in the same year-earlier period. For the full year, Hawaiian reported a net loss of $58.3 million compared with a net income of $5.1 million in 2001.

Operating revenues totaled $632 million for the year ended Dec. 31, compared with $611.6 million for the year ended Dec. 31, 2001.

Hawaiian Airlines filed for Chapter 11 reorganization on March 21, saying it wanted the court's help in renegotiating leases with Boeing Capital Corp. and other aircraft suppliers.

Boeing questioned the assertion that Hawaiian needed concessions from the aircraft manufacturer when the airline had paid stockholders $25 million in a share buyback plan nine months earlier. Adams is a majority shareholder of the airline.

In June, the airline bought back 5.88 million shares from stockholders at $4.25 per share, or 31 percent more than the price at which shares were trading when the buyback was announced.

At a hearing today, Faris said Boeing Capital's claims of Hawaiian management's misconduct "are serious allegations." Faris said he believes there is "initial support" for the allegations.

Boeing Capital asked Faris last month to appoint a trustee to replace Hawaiian's management, including Adams, during the bankruptcy. Today Faris questioned whether a trustee would be good for Boeing. Faris said, "If a trustee is appointed, you wouldn't really know who your long-term customer is."

A hearing on the trustee issue will be held May 8.

Hawaiian Holdings Inc., parent company of Hawaiian Airlines, was given a 15-day extension of the March 31 deadline for filing its annual report with the Securities and Exchange Commission.

Trading of Hawaiian shares on the American Stock Exchange, which was halted when the company filed for Chapter 11 bankruptcy protection, will resume only after exchange officials review the earnings report, Hawaiian said.

If the AMEX decides to delist Hawaiian, the company said it expects its stock to trade on the OTC, or over-the-counter, Bulletin Board.