Former Hawaiian CEO
speaks out

Quarterly results best ever

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By Dave Segal
dsegal@starbulletin.com

Former Hawaiian Airlines Chief Executive Bruce Nobles said yesterday he wanted to set the record straight.

Nobles, who would become CEO of the airline again under a proposal to bring Hawaiian out of bankruptcy, talked to the Rotary Club of Honolulu yesterday about what he called three misconceptions involving the year-old case. Nobles is part of Boeing Capital Corp. and Corporate Recovery Group LLC's joint plan to reorganize the carrier.

The misconceptions, Nobles said, are:

1) Boeing Capital is not allowed to talk to any other parties in the bankruptcy because of its agreement with Corporate Recovery Group;

2) Corporate Recovery Group is trying to steal Hawaiian for $30 million, and;

3) Equity in the company has value.> Nobles said that when he and Corporate Recovery Group approached Boeing Capital last fall, the aircraft lessor said it wanted four things from a prospective new owner of Hawaiian. Those things were fair leases, a management team Boeing could have confidence in, a large capital investment and a comprehensive plan that would ensure Hawaiian's success.

Never was Boeing Capital prohibited from talking to other parties, Nobles said. CRG's agreement for revised terms on the Boeing airplanes is part of an overall package, and Boeing continues to talk to other parties, Nobles said.

"If somebody comes forward with a plan ... Boeing has the right to support somebody else. We also have the right to match that plan and ... we're likely to do that," Nobles said.

Nobles also disputed charges that Corporate Recovery Group is trying to steal the company.

"The entire consideration we are proposing for this company is in excess of $250 million," he said. Besides a $30 million capital infusion, the Boeing Capital-CRG group is giving creditors $150 million in notes, and assuming debt.

Nobles has said that the stock of Hawaiian Airlines' parent, Hawaiian Holdings Inc., has no value because the claims against the airline are greater than the company's value.

Nobles said claims filed against the airline total about $500 million and will rise to about $600 million when Boeing Capital files its claims.

Nobles acknowledged that a Boeing-CRG analysis puts the legitimate claims at about $300 million.

Don Carty, who would become chairman of Hawaiian under the parent company's reorganization plan, doesn't buy Nobles' argument.

"Anyone who says equity in Hawaiian Airlines has no value wants to buy Hawaiian on the cheap," Carty said. "Saying there is no value for equity is not only inaccurate, it does a disservice to the people of Hawaiian Airlines.

"A company with more than $100 million in cash, profits last year of $75 million, and every expectation that this year will meet or exceed last year's earnings , is worth considerably more than $300 million," Carty added.

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Hawaiian Airlines