Lindy field From United States of America, joined Mar 2001, 3118 posts, RR: 14
Reply 2, posted (11 years 5 months 2 weeks 2 days 9 hours ago) and read 3613 times:
Sad news if true--I haven't yet seen any confirmation on the news but I suppose I ought to give it a little more time. I've never flown Hawaiian but I love the look of its livery. Hopefully the airline will remain in business--I can't imagine that Aloha is doing much better. I'm sure the government will make sure that Hawaiians have a way to travel between their islands.
Boeing757/767 From United States of America, joined Jun 1999, 2282 posts, RR: 1
Reply 3, posted (11 years 5 months 2 weeks 2 days 9 hours ago) and read 3589 times:
Here is the press release:
Hawaiian Airlines to Complete Restructuring Under Chapter 11
Friday March 21, 3:03 pm ET
Flights and Services to Continue Without Interruption
HONOLULU, March 21 /PRNewswire-FirstCall/ -- Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (Amex: HA; PCX), announced today that, in order to complete a restructuring process begun several months ago to restore the company's long-term financial health, it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Hawaiian Holdings was not included in the filing and will not be a part of the Chapter 11 process.
"It will be business as usual for the airline as we complete our restructuring," said John W. Adams, chairman and chief executive officer of Hawaiian Airlines. Adams said that the company hopes to complete the restructuring and emerge from Chapter 11 in the fall.
"In the meantime, tickets will be honored, maintenance and service will continue at the highest levels, and our HawaiianMiles program will continue to offer fliers significant award benefits. Code-share agreements with partner airlines should not be affected by the filing. Most importantly, customer safety will remain our highest priority. We take great pride in our 73-year record of safety, service and reliability, and we intend to continue to build upon that record."
"This is a moment in time for our company," Adams said. "As the travel experience on most other airlines is eroding, Hawaiian Airlines has a unique opportunity to distinguish itself with its premiere Hawaii service. While most airlines are cutting wages, cutting flight schedules and cutting services, Hawaiian Airlines is introducing new aircraft, new conveniences, new services and new routes."
Adams said that the company has made significant progress since it launched its restructuring efforts several months ago in response to the dramatically changed operating environment after 9/11. "In addition to significant improvements in operating efficiencies throughout our company, we have been successful in working with the unions that represent the majority of our employees and many of our vendors to lower operating costs and create a more viable, competitive business model for the future.
"Despite our best efforts and extensive negotiations, however, we have been unable to reach agreement with certain of our aircraft lessors on reducing our lease rates to market levels," Adams said. "As a result, we felt we had no choice but to seek the protection of the Bankruptcy Court while negotiations with the lessors continue," Adams said.
Adams pointed to substantial progress made in achieving key elements of the company's strategic plan. Since June, he said, the airline has:
-- Increased operating efficiency through the conversion to a new fleet
of transpacific and inter-island aircraft.
-- Lowered labor costs by approximately $15 million annually through
productivity improvements in union agreements.
-- Significantly reduced distribution costs while it improved efficiency
and inventory management by eliminating paper tickets, inter-island
coupons and conversion to an electronic processing system.
"Clearly we would have preferred to complete our restructuring outside of the Bankruptcy Court, particularly in light of our significant progress to date. A major element of our strategic plan and the key to the future financial health of the company is to mark our aircraft lease rates to market, but without the support of certain of our aircraft lessors, we felt obliged to protect the assets of the company, including the continued use of our aircraft while the restructuring is finalized," Adams said.
He noted that the company has requested Court permission to continue employee wage and benefit programs as usual. It has also requested Court permission to continue customer programs, including its HawaiianMiles frequent flyer program, pay fuel vendors, hotels and other services without interruption and to assume code-share, clearing house and interline airline contracts.
Vendors will be paid in the ordinary course for goods and services provided after the filing date.
The company filed its voluntary petition in the U.S. Bankruptcy Court for the District of Hawaii in Honolulu.
Boeingfan From United States of America, joined Aug 2001, 385 posts, RR: 1
Reply 9, posted (11 years 5 months 2 weeks 2 days 8 hours ago) and read 3320 times:
Reuters Story - Hawaiian and in a separate filing Colombia's Avianca too.
UPDATE - Hawaiian Airlines files Chapter 11, blames lessors
Friday March 21, 4:31 pm ET
(Recasts, adds Aloha merger details, closing prices)
HONOLULU, March 21 (Reuters) - Hawaiian Airlines Inc. said on Friday it filed for Chapter 11 bankruptcy protection after failing to win lease concessions from aircraft lenders during a severe slump in air travel.
The 73-year-old Honolulu-based carrier, the 12th largest in the United States, listed more than $100 million in assets and more than $100 million in debts in its voluntary petition filed with the U.S. Bankruptcy Court for the District of Hawaii.
"Despite our best efforts and extensive negotiations...we have been unable to reach agreement with certain of our aircraft lessors on reducing our lease rates to market levels," Chief Executive John Adams said in a statement.
The carrier "had no choice" but to file Chapter 11, he said. Its parent, Hawaiian Holdings Inc. (AMEX:HA - News), did not file for protection from creditors.
Hawaiian, which has been trying to restructure for several months, said it hopes to exit bankruptcy in the fall. Last March the carrier aborted a planned $170 million merger with rival Aloha Airgroup that it had hoped would help it cope with the air travel slump that followed the Sept. 11 attacks.
Air travel has slumped further as war fears weighed on an already weak economy. UAL Corp.'s(NYSE:UAL - News) United Airlines Inc. and U.S. Airways Group Inc.(Other OTC:UAWGQ.PK - News) sought Chapter 11 protection last year, and analysts said others might follow.
Colombian airline Avianca and its U.S. unit filed for Chapter 11 on Friday.
Hawaiian said on March 14 it had been seeking $15 million in lease concessions from Boeing Co. (NYSE:BA - News), the world's largest commercial aircraft maker. The company plans to have 16 wide-body 767-300ERs in its fleet this year.
The airline did not specify whether the Boeing leases were a factor in its bankruptcy filing. Boeing was not immediately available for comment.
Talks with lessors will continue, Adams said. Hawaiian Airlines plans to honor all tickets and pay vendors normally, and said the bankruptcy filing should not affect code-sharing agreements.
Hawaiian shares closed Friday unchanged at $1.48.
In its Chapter 11 petition, Hawaiian Airlines listed Wells Fargo Bank (NYSE:WFC - News) as trustee as its largest unsecured creditor, with a $10.3 million claim.
(Additional reporting by Chris Stetkiewicz in Seattle.)
T prop From United States of America, joined Apr 2001, 1029 posts, RR: 1
Reply 11, posted (11 years 5 months 2 weeks 2 days 7 hours ago) and read 3247 times:
Despite our best efforts and extensive negotiations...we have been unable to reach agreement with certain of our aircraft lessors on reducing our lease rates to market levels," Chief Executive John Adams said in a statement.
Russ Young, a spokesman for Boeing Capital, Hawaiian's aircraft lessor, confirmed that negotiations between the two were unsuccessful.
Will these last two 67's be delivered? I hope so, but if they're from Boeing Capital...
Ha763 From United States of America, joined Jan 2003, 3657 posts, RR: 5
Reply 21, posted (11 years 5 months 2 weeks 2 days 1 hour ago) and read 2838 times:
I talked to my former boss and she said that every thing is normal for now. It is also not as bad when compared to when they last filed. Oh well, I was hoping to return to HA, but it doesn't look like it will be anytime soon.
Srbmod From , joined Dec 1969, posts, RR:
Reply 23, posted (11 years 5 months 2 weeks 1 day 11 hours ago) and read 2513 times:
Hawaiian's problems stem from their fleet renewal program. When they ordered the 717s and the 767s, these decisions were based on the conditions of the airline industry, which was really good at that time. The travel slump that started during the early part of 2001 and hit rock bottom after the 9/11 attacks really cut into their liquidity, since they had new a/c and not enough pax to help pay for their operations. Mainland-Hawaii flights had suffered much like the international flights out of the U.S. have suffered; and when your load factors in what are supposed to be your best months on your Mainland flights are a lot lower than normal, your finances take a beating. Lower loads on mainland flights equals lower loads on inter-island flights as well. Hawaiian Airlines will more than likely come out of this rather easily; the CH. 11 filing will help to rework lease deals and other deals that will help the company's finances once the travel slump ends.