Airline trustee pay OK'd
By Debbie Sokei
Advertiser Staff Writer
Hawaiian Airlines' trustee Josh Gotbaum got what he wanted from the federal bankruptcy court yesterday: approval of his pared-down compensation package, the go-ahead to hire an airline design consultant and severance packages for several airline employees.
Advertiser library photo
U.S. Bankruptcy Judge Robert Faris approved $600,000 in annual salary for Gotbaum plus $10,000 a month in living, housing and automobile expenses.
"We're pleased the court has again agreed that what we proposed is in the best interest of Hawaiian Airlines," Josh Gotbaum said.
Gotbaum initially proposed compensation amounting to $840,000, which drew opposition from the airline's union groups and creditors committee.
Faris described the approved package as "interim compensation" and said the final sum would be determined after the airline emerges from Chapter 11 bankruptcy. Faris also gave Gotbaum the right to request a "success fee," with the sum to be set once Hawaiian is reorganized.
"We're pleased the court has again agreed that what we proposed is in the best interest of Hawaiian Airlines," Gotbaum said.
The judge also approved the hiring of HNTB Corp. as an airline terminal design consultant for $251,640. Gotbaum has said he hopes to consolidate the airline's operations at Honolulu International Airport to improve efficiencies.
Also approved were severance contracts for more than 400 non-contract employees and executive officers. Details on the cost of the contracts were not immediately available.
Guy Neal, attorney for Hawaiian Holdings Inc., the parent company of Hawaiian Airlines, withdrew the company's objection to Gotbaum's salary proposal.
Neal said the airline has larger issues to tackle, including drafting a reorganization plan that will benefit its employees, creditors and shareholders.
Gotbaum has been putting the finishing touches on a business plan that he will submit to Hawaiian's creditors committee and unions next week.
Once that is in place, Gotbaum said he expects to file a proposal to reorganize the airline by the end of May and take the airline out of bankruptcy by Labor Day.
Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.
