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The Honolulu Advertiser
Posted on: Saturday, April 26, 2003

Airline expects lease talks to go well

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines officials, who have filed for Chapter 11 bankruptcy protection, expressed optimism yesterday that they can successfully negotiate leases with two companies that provide them with airplanes.

On Thursday, Bankruptcy Court Judge Robert Faris granted a motion to allow Hawaiian, Boeing Capital Corp. and another aircraft lessor, International Lease Finance Corp., to extend the deadline for negotiations before the airline must pay debts or risk seeing its planes reclaimed.

Hawaiian has said it filed for bankruptcy protection last month to help it win more favorable arrangements from its lessors.

"We are pleased that we will be able to continue working with Boeing on a restructuring of our leases until June 27 and with International Lease Finance until June 21," said John Adams, Hawaiian's chairman and chief executive officer. "We are hopeful that we can achieve a mutually satisfactory conclusion in the time allotted. However, should this not come to pass, we now have court approval to pursue alternative fleet arrangements in order to prevent any interruption in our operations."

Adams referred to another motion granted by Faris to allow Hawaiian to set financial terms to lease aircraft and possibly crew members from other companies if negotiations with its current lessors break down.

Hawaiian has not yet agreed on an extension with its other aircraft lessor, Ansett Worldwide.

Faris also approved a plan on Thursday to allow Hawaiian to reject two aircraft leases for Boeing 767-300ER planes that had been scheduled for delivery.

Reach Dan Nakaso at 525-8085 or dnakaso@honoluluadvertiser.com.