Airline trustee's pay to be set today
By Debbie Sokei
Advertiser Staff Writer
Hawaiian Airlines' bankruptcy trustee Josh Gotbaum is expected to find out today how much he will be paid as he navigates the state's largest carrier out of bankruptcy.
U.S. Bankruptcy Judge Robert Faris will rule on Gotbaum's compensation package during a 10 a.m. hearing.
Gotbaum is asking for a salary of $50,000 a month and up to $10,000 per month in living, housing and automobile expenses. He also wants to reserve the right to request a "success fee," with the amount to be determined after the airline emerges from bankruptcy.
Gotbaum adjusted his original salary proposal amounting to $840,000 after it was opposed by the Air Line Pilots Association; the Association for Flight Attendants; Hawaiian Holdings Inc., the parent company of Hawaiian Airlines; and some members of the creditors committee.
The latest proposal has the backing of the Office of U.S. Trustee, which approved Gotbaum's new compensation proposal before it was filed in bankruptcy court. Hawaiian's creditors committee also filed a motion in court approving the lower salary.
Hawaiian filed for Chapter 11 bankruptcy in March. Gotbaum was appointed trustee in July after businessman John Monahan resigned after three weeks on the job.
Gotbaum said he would like to lead Hawaiian out of bankruptcy protection by Labor Day and plans to submit his business plan to the creditors committee and unions next week.
The plan may result in changes to the airline's routes, airport costs, labor contracts and airplane fleet, Gotbaum said. He expects to submit the airline's reorganization plan in June.
Before being appointed as trustee, Gotbaum was an investment banker and the CEO of the September 11th Fund, which provided more than $360 million in grants to help victims of the terrorist attacks.
Hawaiian Airlines reported earning $13.5 million in operating profits in December on revenues of $68.9 million.
The figures were included in a preliminary and unaudited financial report filed by the airline in federal bankruptcy court.
Reach Debbie Sokei at dsokei@honoluluadvertiser.com or 525-8064.
