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The Honolulu Advertiser

Updated at 2:25 p.m., Friday, January 18, 2008

Hawaiian Airlines' $4.4B plan to buy 24 jets delayed

Advertiser Staff

The parent of Hawaiian Airlines said today that its $4.4 billion plan to buy 24 Airbus wide-body jets has been delayed and may not be completed.

The state's largest airline said the delay is the result of an impasse in negotiations with its pilots union.

Hawaiian previously announced that it has signed a memorandum of understanding with Airbus and Rolls-Royce to acquire the long-haul jets, in the largest-ever investment by a locally based company.

Hawaiian said it needs to get an agreement with the Air Line Pilots Association over the terms and conditions that the new planes would enter its fleet before it can sign a definitive agreement for the plans. The company said it may have to abandon the deal if it can't reach an agreement with its union.