Hawaiian to return
2 planes to BoeingThe carrier also seeks a sixth
extension on leasing talks
Hawaiian Airlines, which has been attempting to restructure its aircraft leases with Boeing Capital Corp. since March, said yesterday it will ask U.S. Bankruptcy Court for permission to give back two of the Boeing 717s from its 13-plane interisland fleet.
Trustee Joshua Gotbaum said the move will save the airline millions of dollars in ownership and operating costs. He also said the move would not affect service and that Hawaiian, which filed for Chapter 11 reorganization bankruptcy on March 21, plans to maintain its current interisland flight schedule.
"Much of the travel to and within Hawaii has shifted from interisland service to trans-Pacific service," Gotbaum said. "Our interisland flight schedule now reflects this and, accordingly, so must our fleet of aircraft."
In a related development, Hawaiian also filed a motion in Bankruptcy Court yesterday asking for a sixth extension to continue negotiating restructured lease agreements with Boeing Capital. Hawaiian is asking that Bankruptcy Court Judge Robert Faris extend the deadline until Dec. 15 to prevent any repossession of the aircraft it leases from Boeing Capital.
A hearing is scheduled for 11 a.m. Thursday. The current extension is due to expire Friday.
The return of the Boeing 717s to Boeing Capital will reduce Hawaiian's interisland fleet to 11 from 13 -- all leased from Boeing Capital -- and will leave the carrier with an overall fleet of 25 planes.
Hawaiian, which turned down scheduled deliveries of one 767 each from Boeing Capital and Ansett Worldwide earlier this year, currently leases 14 Boeing 767s that are used for trans-Pacific flights.
Seven of the 767s come from Ansett Worldwide and four from International Lease Finance Corp. Hawaiian has restructured its leases with both those lessors. The other three 767s are leased from Boeing Capital.
Gotbaum said he was pleased that Boeing Capital was able to place the two 717s that Hawaiian was seeking to return with another carrier.
"And we're encouraged that we've been able to establish a timetable for renegotiating the rest of the fleet," Gotbaum added.
Boeing Capital spokesman Russ Young said the return of the planes benefit both parties.
"We see it as a win-win," he said. "Hawaiian wanted to adjust its fleet size and we had someone who was interested in the airplanes."
Young declined to identify the interested party, but someone familiar with the transaction said Atlanta-based AirTran Airways was the recipient.
AirTran currently operates 51 717s and has another six on order.
