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Oahu gas prices break $2 threshold

Oahu and Maui gas prices continued set new records yesterday, with the average Honolulu price for regular breaking through $2 a gallon, according to a survey by AAA.

The Honolulu price rose from $1.992 the day before, and from $1.961 a month ago. In Wailuku, Maui, the average price for regular increased to $2.349 a gallon. Premium hit $2.53. Maui's prices have been lifted by a 5-cent increase in the county gas tax that took effect July.

In Hilo on the Big Island, the price remained high at $2.181, but below record levels. Prices on other islands were not available.

DFS cuts warehouse space

DFS Hawaii is trimming its warehouse space in an airport industrial area complex by one-fourth.

The move opens up 40,000 square feet of space in the Airport Industrial Park on Koapaka Street to possible tenants, but keeps the remaining 120,000 square feet of the 160,000 it leased when the structure was built in 1988.

The duty-free and retail operator wanted to reduce its space and make itself more efficient, said Steve Sofos, head of Sofos Realty Corp., which handles leasing for the center's owner, Aipa Properties LLC.

Sharon Weiner, group vice president of DFS Hawaii, said she could not comment because of the sensitivity of the bid process in which DFS is seeking to renew its exclusive contract to sell duty-free merchandise at Hawaii's airports.

Sofos said the DFS decision to vacate some of its space creates opportunities for businesses that have been looking for locations in a tight market for industrial and warehouse space.

Commercial real estate firms have been reporting the lowest industrial real estate vacancy levels in a decade.

Hawaiian gets new lease deals

Hawaiian Airlines filed motions in federal bankruptcy court yesterday asking for approval of restructured lease agreements with aircraft lessor International Lease Finance Corp. and seeking a fourth extension on its leases with Boeing Capital Corp.

The airline, which entered Chapter 11 reorganization bankruptcy on March 21, requested that Judge Robert Faris rule next week since current extensions it has with the lessors are scheduled to expire Aug. 31.

ILFC leases Hawaiian four Boeing 767s that are used for the airline's mainland routes. Hawaiian and ILFC announced in May they had reached a tentative restructured agreement. The pact was finalized this week but terms of the deal were sealed.

Boeing Capital is the airline's primary lessor with leases on 16 of the 27 planes in Hawaiian's fleet. Boeing Capital leases Hawaiian 13 Boeing 717s -- which constitute all of Hawaiian's interisland fleet -- as well as three 767s. The new 30-day extension allows the two sides to continue working out restructured leases and prevents Boeing Capital from taking any action to repossess its planes.

Hawaiian previously restructured its leases with Ansett Worldwide on seven 767s.