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The Honolulu Advertiser

Posted at 4:25 p.m., Friday, March 25, 2005

Hawaiian Airlines pilots reject proposed contract

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines' hopes to emerge from bankruptcy next week under new ownership were pushed back today when Hawaiian's pilots — angered in part over recent management bonuses — voted down a new contract.

The pilots remain the last of Hawaiian's six unions without a new contract, which is a condition of the reorganization plan submitted by RC Aviation LLC, an arm of San Diego-based Ranch Capital LLC.

Out of 288 eligible pilots, 120 voted for the new contract and 144 voted it down.

The issue will now go back to U.S. Bankruptcy Court on Tuesday, where Hawaiian's court-appointed bankruptcy trustee had earlier asked Judge Robert Faris to impose a new contract on the pilots. Faris instead urged both sides to continue negotiating.

Josh Gotbaum, Hawaiian's bankruptcy trustee, said "...We may be forced to go to court to get an agreement so that Hawaiian can exit Chapter 11."