United Air owes While Hawaii tourism officials worry about the long-term effects of United Airlines' bankruptcy reorganization, there are a few more-immediate concerns, namely unpaid bills in the islands.
state $750,000
There also may be other Hawaii groups
among the bankrupt airline’s
32,000-page list of creditorsRuss Lynch
rlynch@starbulletin.comSo far, however, the only obvious entity missing a payment is the state Department of Transportation. "They owe us about $750,000," said Davis Yogi, state airports administrator.
That is a debt that United had incurred in landing fees at Hawaii airports before Monday's bankruptcy filing. While the bankruptcy laws and statements by United and its attorneys say that United has $1.5 billion in interim financing and its bills from now on out will be paid, that doesn't let Yogi get complacent.
"We project about $889,000 per month" should be paid into the state airports fund by United, he said, and the state can't be sure how much of that it will get.
Yogi also said United is one of the "signatory airlines" in a pact with Hawaii's airport system, meaning it is committed to paying its share of the total Hawaii airports operating budget.
Somewhere in the 32,000-page list of creditors in United Airlines' bankruptcy filing a number of Hawaii entities are bound to show up, since United has been a significant part of Hawaii's tourist industry since it started flying to the islands in 1947 and it does a lot of business in Hawaii every day.
Vendors will be paid for any bills run up since United's Chapter 11 filing, but all accounts submitted before that but not paid are frozen under bankruptcy law.
At least one significant creditor in that category is the Honolulu Airport branch of the company that provides United with the thousands of prepared in-flight meals for its passengers outbound from Hawaii, Gate Gourmet.
The company, formerly Dobbs International Services and now part of Swissair Group, declined to comment on an item in United's creditors list that shows a $14.4 million debt owed to Gate Gourmet for national services to United.
United says it brings 5,000 people to Hawaii a day on average and that would indicate at least 5,000 meals a day. How much of Gate Gourmet's running bill was paid before the bankruptcy filing is unknown.
Sherry Cox, a spokeswoman at the Gate Gourmet Americas division headquarters in Memphis, Tenn., said the company cannot comment on anything to do with the United bankruptcy. She declined even to say how many meals the company provides to United in the islands.
All she would say was: "United Airlines has repeatedly affirmed that they are continuing their normal operations. We expect to do the same."
There are also fuel suppliers and parts suppliers and other businesses working locally with United.
In a corporate statement, United said all its flights are running and United "will continue to pay for all goods and services provided following the Chapter 11 filing." The airline put the word "following" in italics for emphasis.
"At this time, the company by law cannot pay for goods and services received before filing," United said.