Posted on: Wednesday, May 11, 2005
Pilots on board as new era at Hawaiian Air nears
| • | Pilots union says it had a 'gun held to our head' |
By Dan Nakaso
Advertiser Staff Writer
Hawaiian Airlines pilots ratified the company's latest contract offer, clearing the way for a new owner to take over the state's largest carrier around June 1 and begin rebuilding after more than two years of federal bankruptcy protection.
Hawaiian's new era under RC Aviation LLC means more opportunities and possibly new planes and new routes for Hawaiian Airlines, said Josh Gotbaum, Hawaiian's court-appointed bankruptcy trustee.
Gotbaum plans to speak today with Hawaiian's prospective new owner, Lawrence Hershfield, about the exact timetable for paying creditors 100 percent of what they're owed and clearing up legal, financial and other details.
"Hawaiian is already one of the best airlines in the country," Gotbaum said. "Getting out (of) bankruptcy means the people of Hawaiian can show the world what they can really do."
Hershfield was unavailable for comment yesterday.
In a March interview, Hershfield said one of the company's first goals will be to try to acquire new aircraft leases to offer new routes for Hawaiian.
Yesterday, in a statement, Hershfield said the pilots' ratification "paves the way for the company to emerge from bankruptcy within the next few weeks. I would like to thank all of the company's employees for having worked so diligently over the last two years to make Hawaiian the nation's leading airline in so many ways."
Last June, Hershfield's San Diego-based Ranch Capital LLC spent $41.4 million to purchase 10 million of the 28.4 million outstanding shares of Hawaiian Holdings Inc., the airline's parent company.
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.
As part of its reorganization plan, RC Aviation required each of Hawaiian's six unions to renegotiate contracts. The pilots were the last of the six to agree to a new contract.
"We're still reeling from how upsetting this whole process has been for all of us employees," said Sharon Soper, president of the Association of Flight Attendants master executive council representing Hawaiian flight attendants. "Having to go through this has really been hard for everyone. We're hopeful that the new owner, Larry Hershfield, will do right by the employees. I guess people will take a wait-and-see attitude."
Zoe Ann Roach, a first officer aboard Hawaiian's Boeing 767-300 planes, has heard Hershfield speak at employee meetings and found him to be "open and very approachable."
"One way or another we were going to exit bankruptcy," she said. "But there's no question that we're looking forward to moving on and putting this behind us. While we're cautious, at the same time we're hoping for the best."
Hawaiian filed for Chapter 11 bankruptcy protection in March 2003. Emerging after more than two years "brings back stability to the operation and frees us up to do perhaps good things," said 767-300 pilot David Wolz.
"I'm positive about the whole thing at this point," he said.
Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or at 525-8085.
