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The Honolulu Advertiser
Posted on: Saturday, January 31, 2004

Boeing files claim against Hawaiian

By Debbie Sokei
Advertiser Staff Writer

Boeing Capital Corp. is seeking $40.4 million in damages from Hawaiian Airlines for the nondelivery of three airplanes.

Boeing is owed $16.7 million for the nondelivery of a 767 plane and $23.7 million for the return of two 717s, said Russ Young, spokesman for Boeing.

"These are damages that we believe reflect our damages as a result of not delivering those aircrafts," said Anil Patel, director of International Region for Boeing.

The claim also reflects the amount Boeing is spending to modify and reconfigure the two 717s for the new leaseholder, AirTrans Airways. The 767, which was delivered to Hawaiian in April, was sold to a foreign carrier for an undisclosed amount, Patel said.

Hawaiian is operating 11 717s and three 767s from Boeing under an extended lease. Since Hawaiian filed for Chapter 11 bankruptcy protection in March, Hawaiian and Boeing have extended the leases several times.

Renegotiating aircraft leases and labor concessions are part of Hawaiian's business plan as the carrier tries to emerge from bankruptcy by September.

Hawaiian is Boeing's fifth-largest customer with an estimated lease value at $536 million, according to Boeing's filings with the Securities and Exchange Commission.

Last year, Ansett Worldwide Aviation Service Inc. restructured leases for seven 767s with Hawaiian and filed a claim for more than $100 million.

Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.