Hawaiian wants airplane lease options

By Kelly Yamanouchi
Advertiser Staff Writer

Hawaiian Airlines wants to line up other options for aircraft in case it is unable to reach an agreement with Boeing Capital Corp. to lower the lease on its airplanes.

Hawaiian filed for bankruptcy protection last month to help it win more favorable leases from aircraft suppliers. Hawaiian said Monday it was "essentially done" with negotiations with two other lessors, leaving only Boeing Capital to deal with.

Hawaiian's active fleet includes 16 jets from Boeing Capital.

Hawaiian asked the bankruptcy court in a filing Monday to give it permission to set terms for alternative aircraft lease arrangements, including short-term agreements to lease aircraft and crews.

"We don't have any agreements at this point," said Hawaiian spokesman Keoni Wagner. "We're just requesting permission."

AirBus, Boeing Capital's competitor, is among the lessors Hawaiian has approached. A spokeswoman for Airbus said "we talk with Hawaiian Airlines like we talk to all other prospective customers," but she would not elaborate.

The deadline for negotiations with aircraft lessors is May 20. Hawaiian has asked the court to approve an extension of that deadline.

Hawaiian wants permission to enter into "term sheets" outlining financial terms for lease agreements and make deposit payments estimated at $150,000 to $500,000 each.

Hawaiian also wants permission to keep the terms of the agreements under seal. Otherwise, it said, its negotiations with Boeing Capital could be adversely affected.

Hawaiian is also asking the court's approval to reject leases with Ansett Worldwide Aviation Services Inc. and Boeing Capital for two 767-300ER aircraft for trans-Pacific flights scheduled for delivery in April and May.

Boeing spokesman Russ Young said the rejection of the lease "wasn't unexpected."

A hearing on Hawaiian's motions has been set for tomorrow.