Hawaiian to cut
150 jobs

The airline lost $43.7 million through
the first half of the year

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By Russ Lynch
rlynch@starbulletin.com

Hawaiian Airlines plans to lay off about 150 employees, or 4 percent of its work force, over the next several months.

Pilots, flight attendants, airport service personnel and maintenance workers all will be affected.

In addition, the airline said yesterday it has received commitments from 60 flight attendants to take voluntary leaves of absence and has reduced work schedules for part-time reservations personnel. Hawaiian also said it will leave open some unfilled positions.

In announcing the cuts yesterday, Hawaiian cited continued soft demand for travel.

Hawaiian has yet to report its third-quarter financial results, but it lost $43.7 million from operations through the first half of this year, compared with an operating profit of $7.5 million in the first half of last year.

"We don't like having to take steps that affect our employees' lives in this way, but the economic crisis we and all airlines are now facing demands aggressive action to maximize efficiency," John W. Adams, Hawaiian's chairman, chief executive officer and president, said in a statement. "In attacking all areas of our cost structure, we can't avoid these difficult decisions."

The airline, which has 3,538 employees, said those who are laid off will receive severance benefits, many of which are defined by union contracts.

Hawaiian and competitor Aloha Airlines both have suffered losses because of the decline in travel since the terrorist attacks of Sept. 11, 2001.

Aloha said recently it has no plans for layoffs, but it has been asking employees to agree to pay cuts that would also apply to managers.

Aloha has applied for a federal guarantee, allowed under post-9/11 emergency airline legislation, to back $40.5 million of a $45 million private-sector loan it has arranged.

Aloha has not received an answer to its June 28 application.

Hawaiian Airlines has not sought a loan guarantee because, it said, it is not having trouble raising money through normal sources.

But Hawaiian and Aloha have received federal permission to work together to reduce capacity on some interisland flights, a move aimed at getting a better share for each of them.

The airlines have yet to finalize the details of flight cuts, but expect to have them in place by Dec. 1.

Both the Hawaii carriers have received federal grants under a program to keep airlines flying after Sept. 11, 2001. Hawaiian received $31 million and Aloha received $8.5 million. That money will not have to be repaid.