"I would say on behalf of the new board and on behalf of Ranch Capital, we are committed to being the sorts of owners that make folks happy to be a part of this company."

In June, Hershfield's San Diego-based Ranch Capital LLC spent $41.4 million to purchase 10 million shares of 28.4 million shares outstanding of Hawaiian Holdings Inc., the parent company of Hawai'i's largest airline.

Hershfield then became president and CEO of Hawaiian Holdings and devoted himself to a reorganization plan by a Ranch subsidiary, RC Aviation LLC, to bring Hawaiian out of bankruptcy.

Hershfield and his partner, Randall Jenson, founded Ranch Capital in 2002 to pursue investments in undervalued or distressed assets of companies.

Before the Hawaiian Holdings stock purchase, Ranch Capital was involved in two other deals: buying the debt of a seismic data company called Seitel, and a 2002 agreement with billionaire Warren Buffett to provide $215 million in debtor-in-possession financing for mobile-home manufacturer Oakwood Homes Corp.

Since June, Hershfield said he has devoted himself exclusively to RC Aviation's proposal to reorganize Hawaiian Airlines.

While other investors may decide to sell their shares after Hawaiian emerges from bankruptcy, Hershfield said he plans to hold on to his and continue to run the company for the foreseeable future.

"I personally expect to keep my shares for quite a while because I think the company has a terrific future and the shares will hopefully be a good investment for a significant period of time," Hershfield said. "I am personally quite excited about the opportunities for the company. I do not intend to sell my shares when we come out (of bankruptcy) or anytime soon."

Yesterday, Hawaiian Holdings announced the selection to its board of Adm. Thomas Fargo, 56, who recently retired as leader of the U.S. Pacific Command, with headquarters in Hawai'i.

Fargo, who relinquished his command Feb. 26, also sits on the board of directors of Hawaiian Electric Industries.

Hawaiian Holdings' board now also includes Hershfield, 48, as its chairman; former American Airlines chief executive Don Carty; and Bert Kobayashi, former chairman of the University of Hawai'i Board of Regents and current president of the UH Athletic Foundation.

"We tried very hard to put in place a board that will be serious and professional and really add value," Hershfield said. "We feel we have put in place a terrific board that brings great experience in the airline industry in Don Carty, terrific leadership experience with both Carty and Adm. Fargo and a good local presence with Bert Kobayashi and the admiral. In this day and age, it's perhaps more important that a board take its responsibilities very seriously and makes sure the company is run as cleanly and professionally as it can be."

Hershfield disputed a television report that Hawaiian's court-appointed bankruptcy trustee, Josh Gotbaum, will stay on as a Hawaiian Airlines consultant after Hawaiian emerges from bankruptcy.

Gotbaum oversaw Hawaiian through successive months of profits and an on-time performance that has led the airline industry for 15 straight months. But Gotbaum also has angered many Hawaiian employees, starting with one of his first acts to temporarily freeze contributions to the pilots pension fund.

"Josh's role with the company will be completed when we emerge," Hershfield said. "Josh won't be a consultant, nor an employee, nor a director. His job will be finished."

Gotbaum's future with Hawaiian has been one of the consistent questions Hershfield has been asked whenever he has met with groups of Hawaiian employees. They also frequently want to know about the role of Mark Dunkerley, Hawaiian's current president and chief operating officer.

Dunkerley, who will become CEO and will also have a seat on the board of directors, "will run the company on a day-to-day basis," Hershfield said. "I think Mark is a terrific executive. The airline is lucky to have him."

While in bankruptcy, Hawaiian has been unable to lease new planes. So one of the first goals will be to try to acquire new aircraft leases, in a tight aircraft market, to offer new routes for Hawaiian, Hershfield said.

"Our emergence from bankruptcy is critical so that we are perceived as a viable bidder," Hershfield said.

At the same time, Dunkerley will be asked to improve communication throughout the organization.

"One of the problems with the company historically and in particularly through the bankruptcy has been insufficient, regular communication between management and the board, on one hand, and the with the work force, on the other hand," Hershfield said. "Mark and I have spoken that once we emerge (from bankruptcy) it will be important to do a better job of that. And that will primarily be Mark's job."

Hershfield, who prefers to be called Larry, will remain based in San Diego, where he has a home in Rancho Santa Fe.

But he expects to have a bigger presence in Hawai'i after Hawaiian emerges from bankruptcy.

"I won't be doing any commercials" for Hawaiian, Hershfield said, "but I would hope to be popping up around town and playing a role in the company."

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