SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): March 24, 2017
HAWAIIAN HOLDINGS, INC.
(Exact Name of Registrant as Specified in its Charter)
(State or Other Jurisdiction of
(Commission File Number)
3375 Koapaka Street, Suite G-350, Honolulu, HI 96819
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
On March 24, 2017, the Company announced the ratification of a 63-month contract amendment with its Pilots as represented by the Air Line Pilots Association (ALPA). The ratification is expected to result in a one-time cash payment of approximately $55 - $60 million in the first quarter related to a ratification bonus and other benefits that will result in a financial charge up to $30 million in the first quarter, which is in addition to the $34 million special charge recorded in the fourth quarter of 2016 relating to the anticipated agreement.
In the second half of the year, the Company will also make a one-time cash payment of $100 - $110 million to settle a portion of its outstanding other post-retirement plan obligation with its Pilots.
The ratification is also expected to result in an ongoing net increase to wages and benefits expense beginning on April 1, 2017, which for the remainder of 2017 is expected to be approximately $25 - $30 million.
None of the information furnished in this report shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and unless expressly set forth by specific reference in such filings, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.
This Current Report on Form 8-K contains forward-looking statements, including statements regarding the expected timing and amounts of certain payments and charges the Company is expecting to make or incur. These forward-looking statements are inherently subject to various risks and uncertainties, including changes to the underlying assumptions used to calculate the expected payments and charges based on further analysis and the risks, uncertainties and assumptions discussed from time to time in the Company’s other public filings and public announcements, including the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.
Item 9.01 Financial Statements and Exhibits.
Press Release dated March 24, 2017.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: March 24, 2017
HAWAIIAN HOLDINGS, INC.
/s/ Shannon L. Okinaka
Shannon L. Okinaka
Executive Vice President, Chief Financial Officer and Treasurer
Press Release dated March 24, 2017
FOR IMMEDIATE RELEASE
Friday, March 24, 2017
INVESTOR RELATIONS CONTACT:
Jay Schaefer, VP and Treasurer - (808) 838-6751
MEDIA RELATIONS CONTACT:
Alison Croyle (808) 835-3886
Hawaiian Airlines Pilots Ratify Contract
HONOLULU - Hawaiian Airlines and the Air Line Pilots Association (ALPA) announced today that the union’s membership ratified a 63-month contract amendment that provides significant compensation increases for the airline’s 670 pilots.
Pilots approved the contract amendment outlined in a tentative agreement reached last month between Hawaiian and ALPA. The amendment takes effect April 1 and its term extends through July 1, 2022.
“This contract amendment recognizes the contributions our pilots have made to our company, while allowing us to continue to grow and compete as a world-class airline,” said Jon Snook, Hawaiian’s chief operating officer and the company’s lead negotiator.
Hawaiian Airlines reached new accords in 2016 with three labor unions representing more than 2,200 employees. It is currently in negotiations with the Association of Flight Attendants, whose contract became amendable in January.
About Hawaiian Airlines
Hawaiian®, the world’s most punctual airline as reported by OAG, has led all U.S. carriers in on-time performance for each of the past 13 years (2004-2016) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler and Travel + Leisure have ranked Hawaiian the highest of all domestic airlines serving Hawai‘i.
Now in its 88th year of continuous service, Hawaiian is Hawai‘i’s biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. Mainland.
Hawaiian offers non-stop service to Hawai‘i from more U.S. gateway cities (11) than any other airline, along with service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of more than 200 daily flights system-wide.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow updates on Twitter about Hawaiian (@HawaiianAir) and its special fare offers (@HawaiianFares), and become a fan on its Facebook page. For career postings and updates, follow Hawaiian’s LinkedIn page.
For media inquiries, please visit Hawaiian Airlines’ online newsroom.