Airline factions oppose trustee salary

By Dan Nakaso
Advertiser Staff Writer

The Air Line Pilots Association, Association of Flight Attendants and the parent company of Hawaiian Airlines yesterday each filed arguments against paying Hawaiian Airlines' bankruptcy trustee a proposed $840,000 annual salary.

Attorneys for Hawaiian Holdings included a chart compiled by an airline consultant that he said would make Hawaiian's trustee Joshua Gotbaum the second highest-paid airline chairman, president and CEO of a U.S. airline.

Gotbaum's proposed $70,000 monthly salary would place him only behind the Continental chairman and CEO's annual salary of $1,063,350, according to data compiled by Hubert Horan of GCW Consulting.

"Such a high rate of compensation without any assurance of a timely emergence from bankruptcy ... renders (Hawaiian) vulnerable to a significant financial drain at the expense of creditors and equity holders," Horan wrote.

In addition to his salary, Gotbaum also is seeking reimbursement for housing, automobile, travel expenses and company medical benefits, according to Capt. Jim Giddings, chairman of the Hawaiian Airlines pilots union.

The union, which is fighting Gotbaum over missed payments to their pension fund, also objects to Gotbaum's severance plan for top executives, bonuses and additional compensation for Gotbaum at the end of Hawaiian's bankruptcy.

"At the same time he claims Hawaiian can't afford to pay pilot pensions, he's asking for a great deal of money with very few successes to justify it," Giddings said.

Hawaiian Airlines attorney Bruce Bennett emphasized yesterday that the official committee of unsecured creditors approved Gotbaum's compensation package, which awaits a hearing in federal bankruptcy court.

And the opposition filed yesterday to Gotbaum's salary only came from groups that differ with Gotbaum, Bennett said.

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