HONOLULU –- After months of negotiations, Hawaiian announced today that it has reached agreement with the Air Line Pilots Association (ALPA) on a new three-year contract.
The union will send the new contract to Hawaiian's 298 pilots for ratification as soon as possible. When this and the recently negotiated contract with flight attendants are ratified, Hawaiian will be able to exit bankruptcy.
Hawaiian Airlines Trustee Joshua Gotbaum said, "We're pleased to have negotiated a contract that meets the needs both of Hawaiian and our pilots. It will permit Hawaiian to exit bankruptcy and show the world what a great airline it has become."
Four of Hawaiian's six labor unions have already ratified new three-year contracts: the Clerical and Mechanics units of the International Association of Machinists (IAM), representing employees working in aircraft and facility maintenance, accounting, reservations, customer services and ramp services; the Transport Workers Union, comprising Hawaiian's dispatchers; and the Network Engineering Group, representing the airline's computer engineers.
A fifth labor group, the Association of Flight Attendants (AFA) is planning a ratification vote by its 794 members on a new three-year contract agreement negotiated with Hawaiian this past Friday.
New labor contracts with all six unions are necessary for Hawaiian to exit bankruptcy under the joint plan of reorganization submitted by Trustee Gotbaum, Ranch Capital, LLC, (the majority shareholder of Hawaiian Airlines' parent company Hawaiian Holdings, Inc.) and Hawaiian Airlines' Official Committee of Unsecured Creditors.
The joint plan also has the backing of Boeing Capital Corporation and Ansett Worldwide Aviation Services, the airline's two largest aircraft lessors, and has been approved by more than 95 percent of creditors holding unsecured claims, and more than 98 percent of creditors holding convenience claims of $5,000 or less.
Gotbaum said Hawaiian would request a continuance of the bankruptcy court's confirmation hearing on the joint plan, currently scheduled for February 28, to allow enough time for ratification votes to be conducted by AFA and ALPA.
"Hawaiian succeeds because everyone at the airline comes together to make it a success," Gotbaum said. "That spirit will take Hawaiian, an airline with a proud past, into an even brighter future."
About Hawaiian Airlines
Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Readers of two prominent national travel magazines, Condé Nast Traveler and Travel + Leisure, have both rated Hawaiian as the top domestic airline serving Hawaii in their most recent rankings, and the fifth best domestic airline overall.
Celebrating its 76th year of continuous service, Hawaiian is Hawaii's biggest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities than any other airline. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to Australia, American Samoa and Tahiti.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (AMEX and PCX: HA). Since the appointment of a bankruptcy trustee in May 2003, Hawaiian Holdings has had no responsibility for the management of Hawaiian Airlines and has had limited access to information concerning the airline. Additional information is available at www.HawaiianAir.com.