By Andrew Compart
HONOLULU -- Hawaiian Airlines filed for Chapter 11 bankruptcy
protection March 21.
The company began a restructuring several months ago, but said
it had to file for Chapter 11 because it has been unable to reach
agreement with some of its aircraft lessors to reduce lease rates
to what Hawaiian considers "market levels."
The court filing lists Panda Travel in Honolulu as the creditor
with the second largest unsecured claim, owed an estimated $5.6
million in commission.
John Adams, the airline's chairman and CEO, insisted "it will be
business as usual for the airline as we complete our
restructuring," and said the airline hopes to emerge from Chapter
11 in the fall.
Hawaiian asked for court permission to continue frequent flyer
and other customer programs, pay fuel vendors, hotels and other
services without interruption, and assume code-share, clearing
house and interline airline contracts.
The company said it also requested court permission to continue
employee wage and benefit programs as usual.
Hawaiian said its ongoing restructuring already has lowered
labor costs by about $15 million annually through productivity
improvements in union agreements.