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The Honolulu Advertiser
Posted on: Saturday, March 22, 2003

Airline says it will honor all tickets

Advertiser Staff

Q. Why is Hawaiian filing for bankruptcy protection?

A. Chief Executive John Adams said the airline has been unable to reach agreements with aircraft lessors to reduce lease rates. "As a result, we felt we had no choice but to seek the protection of the bankruptcy court while negotiations with the lessors continue," Adams said.

Q. Are Hawaiian Airlines tickets still good? Is it safe to book flights with Hawaiian?

A. Hawaiian said it will honor all tickets, including electronic tickets, through Chapter 11 reorganization. Agreements with partner carriers, including America West, are not affected. Refund policies will not change.

Q. Will flight schedules be cut?

A. Hawaiian officials said flight cuts are a possibility "based on market conditions and supply and demand" and not on the bankruptcy filing. The Air Transport Association has forecast that a war with Iraq could lead the airline industry to eliminate 2,200 flights. However, neither Hawaiian nor Aloha have announced flight cuts based on the start of military action in Iraq.

Q. What will happen to my HawaiianMiles?

A. Hawaiian intends to continue its HawaiianMiles program and expects the Hawaiian Airlines MasterCard to continue to be honored.

Q. Will ticket prices increase?

A: Hawaiian said ticket prices will "remain competitive."

Q: Will safety on flights be compromised?

A: Hawaiian said it will continue maintenance and service "at the highest levels," and said customer safety will remain "our highest priority."

Q: Does Hawaiian need to seek further concessions from employees?

A: Hawaiian got about $15 million in labor concessions and said it does not need any more savings from employees. Hawaiian said there is no intention to reopen contracts.

Q: Will Hawaiian continue to pay its suppliers and partners?

A: Hawaiian said it has requested court permission to pay fuel vendors, hotels and other services without interruption. "Vendors will be paid in the ordinary course for goods and services provided after the filing date," according to the carrier.

Q: When will the airline emerge from bankruptcy?

A: Hawaiian said it plans to emerge from Chapter 11 protection in the fall. It plans to restructure lease agreements by April.

Q: What happens to Hawaiian shareholders?

A: Hawaiian is meeting with the American Stock Exchange on Monday to discuss the future of HA stock trading. Trading was halted yesterday.