The furlough involves 178 people on O'ahu, 36 on Maui and 35 on Kaua'i.

Fifty-nine workers would be kept to handle administrative and operational functions. John Garibaldi, Superferry president and chief executive officer, said the company had reached a point where it couldn't continue paying the more than $300,000 in weekly salary to the employees.

"It was a very, very difficult decision today," said Garibaldi, talking to reporters after announcing the furlough at the Superferry's Waterfront Plaza offices.

"We're very disappointed."

He said the company is hopeful that a special session of the Legislature will be called to allow the ferry to restart. He said workers will be recalled back to their jobs if that happens.

Until then the company is paying for their healthcare costs.

Scott Swanson, an IT engineer who was hired in March, said he didn't know how we would be making ends meet, but remained optimistic about the operation's future.

"It's hopefully just a temporary thing," said Swanson, the 35th worker hired by the Superferry.

"I hope we can all come back."

Garibaldi said the furloughs were an unavoidable consequence of the recent Maui court ruling that barred operations while an environmental impact assessment is conducted. He said the company had received inquiries about moving the ferry elsewhere in the world, but for now the Superferry and investors were concentrating on getting the Hawai'i service operating.

State Senate Democrats were meeting privately in caucus with state Attorney General Mark Bennett to discuss a possible special session to help Superferry.