Boeing says profits may suffer

Advertiser Staff and News Services

Hawaiian Holdings, which operates Hawaiian Airlines, has $476 million in outstanding loans to Boeing and has asked for a restructuring of its transactions. Boeing said its profit may be hurt if Hawaiian defaults on the loans. Richard Ambo • The Honolulu Advertiser

Hawaiian, which operates Hawaiian Airlines, has $476 million in loans outstanding to Boeing, or about 4 percent of Boeing's portfolio. Boeing, the world's largest manufacturer of aircraft, made the comments in its annual Securities and Exchange Commission filing.

Since the fourth quarter of 2001, Hawaiian has bought 10 Boeing 767s, adding to its fleet of 13 smaller Boeing planes. Boeing's finance unit is negotiating with struggling airlines such as UAL Corp.'s United Airlines and AMR Corp.'s American Airlines who want to lower their costs.

Hawaiian, which had $612 million in 2001 sales, has had a net loss in three of its past four quarters.

It has been reaching agreements with its labor groups for $15 million in labor concessions and had announced earlier it was seeking a similar amount in concessions from its equipment lessors, including Boeing.

Boeing said its profit may be hurt if Hawaiian defaults on the loans.

Hawaiian spokesman Keoni Wagner would only say last night that discussions with stakeholders in Hawaiian's business such as Boeing "have been and continue to be constructive and productive."