Hawaiian Airlines resumes pilot pension payments
By Dan Nakaso
Advertiser Staff Writer
Hawaiian Airlines will resume monthly payments of about $300,000 to its pilot retirement plan, but will continue negotiating with the pilots union over a missed $4.25 million pension contribution, the Air Line Pilots Association announced yesterday.
The announcement came three days before a bankruptcy court hearing on the pension payment that was due Sept. 15. The agreement gives Hawaiian and the pilots union another 120 days to negotiate the payment.
"They still owe the back payments," said Capt. Jim Giddings, chairman of the Hawaiian Pilots' Master
Executive Council, in a statement. "There's no question about that. But this temporary agreement will allow some time for a reasoned discussion about the overall issue."
The monthly 10 percent contributions into the pension fund for March through September and the $4.25 million payment will be held in a segregated bank account and be considered restricted funds by the company, Giddings said.
Hawaiian trustee Josh Gotbaum said in a statement, "This is a complex, difficult issue, one that's important to Hawaiian and our pilots. I filed the pension motion so that we could try and solve the problem collaboratively. Fortunately, ALPA has now agreed, so together we'll ask the court to do just that."
Hawaiian, which filed for Chapter 11 bankruptcy protection in March, generated $3.95 million in net income for September — its fifth consecutive month of profits, according to its latest monthly statement of operations filed in U.S. Bankruptcy Court.
Hawaiian's September financial performance resulted in $47.7 million in net income for the year. For July, August and September, Hawaiian earned $40 million in net income, compared with $6.4 million for the same period last year, as the airline industry struggled to recover from the effects of Sept. 11, 2001.
Yesterday, Hawaiian also said the October edition of Conde Nast Traveler magazine ranked it as the top airline for meals, beverages and cabin service, based on questionnaires issued to 4,000 readers identified as frequent business travelers.
"The big surprise is Hawaiian Airlines, which receives higher scores for Food/Beverages and Cabin Service than any other major (airline)," Hawaiian quoted Conde Nast Traveler.
Hawaiian's first-class and coach meals are created by Executive Chef Beverly Gannon of the Hailimaile General Store and Joe's Bar & Grill on Maui. Gannon is a charter member of the Hawai'i Regional Cuisine chefs organization.
"That sophisticated travelers rate Hawaiian best for food and service says a lot," Gotbaum said.
Conde Nast ranked Hawaiian as the fifth-best U.S. airline overall.
Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.
