honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Saturday, April 28, 2007

Hawaiian's reservation jobs heading overseas

By Rick Daysog
Advertiser Staff Writer

Hawaiian Airlines said it has begun transferring its reservation call center operations to an outside vendor in the Philippines.

The move is the first of several outsourcing measures that will affect as many as 249 positions in three departments at Hawaiian.

Airline spokesman Keoni Wagner said all workers will be offered new jobs at the airline or buyouts.

The company will continue to operate its Hawai'i call center for several weeks until it "feels comfortable" with the switchover, Wagner said. The outsourcing began earlier this week.

Hawaiian also will transfer its accounting and information technology functions to a vendor in India over the next several months, according to Wagner.

The outsourcing comes as the Honolulu-based air carrier and one of its biggest unions, the International Association of Machinists and Aerospace Workers District 141, reached an outsourcing agreement after reviewing how other airlines were laying off people, cutting benefits or terminating pensions and retirement plans.

Those moves have produced a situation in which Hawaiian Airlines is competing against some carriers that have lower labor expenses, he said.

Labor costs have traditionally been the biggest expense for airlines, though in recent quarters fuel costs have spiked above those for worker salaries and benefits. In 2006, Hawaiian Airlines spent $228 million on labor. Hawaiian has more than 3,300 employees.

Since the Sept. 11 attacks, many major carriers, such as United Airlines and British Airways, have outsourced their backoffice functions.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.