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The Honolulu Advertiser
Posted on: Wednesday, July 9, 2008

NEW ALOHA SUIT
Aloha flight attendants sue for back pay

By Rick Daysog
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Aloha Airlines attendants say they're owed back pay and benefits because the airline failed to give them 60 days notice of its closing.

ADVERTISER LIBRARY PHOTO | March 2008

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The union representing former Aloha Airlines flight attendants is suing the defunct airline, seeking 60 days in back pay and benefits.

In a filing in federal bankruptcy court on Monday, the Association of Flight Attendants, which represents about 350 former Aloha employees, alleged the company failed to provide 60 days notice of its closing as required under federal law.

"Employees are entitled to 60 days of pay," attorney Kurt Leong wrote in the filing.

"In addition, affected AFA-represented employees are entitled to 60 days of benefits under any employee benefit plan, including retirement and 401(k) contributions, the cost of medical expenses ... and any and all other employee benefits."

Dane Field, Aloha's court-appointed bankruptcy trustee, could not be reached for comment.

Aloha, once the state's second largest carrier, shut down its passenger service on March 31 and laid off 1,900 workers, in the largest-ever mass termination in Hawai'i. The shutdown came 11 days after Aloha filed for bankruptcy protection.

In its lawsuit, the union is asking that its claims be considered an administrative expense which would increase the likelihood of collecting the back pay, benefits or a portion should the union win its case.

Aloha's secured creditors — GMAC Commercial Finance LLC and Yucaipa Co. have priority on the first $100 million-plus that is collected by the bankruptcy estate through the sales of Aloha's assets. But the creditors have agreed to pay a portion of the proceeds from the asset sales to pay for the administration of the bankruptcy case.

So far, Field received more than $30 million through the sale of Aloha's cargo division, its contract services unit and its legal claims against go! airlines' Phoenix-based owner Mesa Air Group.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.