Hawaiian seeking $30M in concessions

By Kelly Yamanouchi
Advertiser Staff Writer

Hawaiian Airlines is asking its employees for $15 million in concessions and is seeking another $15 million in concessions from companies it does business with, including Boeing Co., a union official said.

As previously reported, the airline is seeking to cut costs as it struggles to restructure, and has met with labor groups and equipment lessors to present its plans and ask for concessions.

John Adams, Hawaiian Airlines chairman and chief executive, wants to secure the concessions by late this month and hopes to have the company's entire business plan in place by April. The move comes after an economic recovery failed to fully materialize last year and as the tourism industry faces an uncertain future in the face of a potential war.

Adams told employees in a memo that the plan to cut costs is more favorable than filing for Chapter 11 bankruptcy protection and that more layoffs are likely in the near term. The airline is in the process of cutting 150 jobs as announced last year.

Adams also said in the memo that if the plan to cut costs is not successful, Hawaiian will need to downsize operations, which could involve further flight cuts.

In another memo Adams told employees that three managers had resigned. Hawaiian is seeking to replace John Happ, senior vice president for marketing and sales; Lyn Anzai, vice president for legal and government affairs; and Brian Hermansader, vice president for maintenance and engineering.

Last month pilots union leaders took a unanimous vote of no confidence in Hawaiian's chief financial officer Christine Deister, the audit committee of the airline's board of directors and the members of the board who voted for a stock buyback that cost the airline $25 million in cash last year.

Adams said it was important to compensate shareholders for their support and patience after they invested $50 million in Hawaiian six years ago. Adams is Hawaiian's major shareholder.

"He should have known that we were coming into hard times," said Ron Hoopai, Hawaiian pilots master executive council chairman. "I sure hope we come out of this. It's gonna be a lot of give and take on both sides."