Updated at 12:12 p.m., Friday, May 25, 2007
Layoffs will cost Hawaiian Air parent $1.5M-$2M
Advertiser Staff
The layoff of 98 workers at Hawaiian Airlines will cost its parent company between $1.5 million and $2 million this quarter because of severance pay owed the employees, according to a filing with the Securities and Exchange Commission.Hawaiian Holdings Inc., owner of the Honolulu-based airline, said it will incur severance-related costs during the quarter ending next month. Beyond that the move is likely to save the company $3 million to $4 million annually, the filing said.
Hawaiian Airlines yesterday announced it was letting go 98 nonunion employees and cutting an additional 38 vacant positions. Hawaiian lost $40.6 million last year, in part because of the launch of go! airlines, which is trying to take part of the interisland passenger market.
Hawaiian said the cuts would make its management structure leaner and adjust its resources to meet customers' needs.
Hawaiian Holdings' shares rose 10 cents to close at $3.75 today on the American Stock Exchange.
