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[ FAST FACTS HAWAII ]

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Pension agency steps in United case

The government moved in federal court yesterday to take over the pension fund for United Airlines' pilots, an unusual step that it said was needed to prevent the airline and the pilots' union from exploiting the federal pension-insurance program.

The union that represents the pilots at United questioned the government's motives and warned that it would "take every lawful action necessary to protect the interests of the United pilots" in the pension dispute.

In a complaint filed in U.S. District Court in Chicago, the Pension Benefit Guaranty Corp. asked the court to terminate the plan "as soon as practicable, but in no event later than Dec. 31, 2004." United and its pilots had hoped to keep the plan going until May, then terminate it. That would give greater coverage to the active pilots, the agency said, but cause the government's losses "to increase unreasonably."

The pension agency said in a separate statement that a delay would add $140 million to its costs in taking over the plan and divert resources that United might better use to keep its other employees' pension plans afloat. United stopped making its mandatory contributions to those plans in July. The affected unions and a court-appointed independent trustee have been fighting separately in bankruptcy court to make United contribute the money.

UAL flight attendants authorize a strike

United Airlines flight attendants voted to authorize strikes in the event a bankruptcy court next month lets the carrier scrap the workers' contract.

The employees voted 88 percent to give the Association of Flight Attendants the option to call strikes, the union said in a statement yesterday. A court hearing on United's request to cancel the attendants' contract may be scheduled as early as Jan. 7.

Flight attendants "are ready to fight" by staging strikes across the United system or in a single city, the union statement said. United should negotiate a deal with the flight attendants rather than scrap contracts, the union said.

UAL Corp., the Chicago-based parent of United, is seeking about $138 million in concessions from the attendants and the termination of their pension plan after they provided $314 million in givebacks last year. United, the world's second- biggest carrier, is negotiating to cut $2 billion in annual expenses, including $1.36 billion in employee concessions.

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PROMOTIONS

» Finance Factors has promoted Wesley Higuchi to vice president and regional sales manager for the company's Maui Mortgage Center. He will oversee residential loan production on Maui, while developing strategies to strengthen and expand customer relationships and also work with the branch sales force. He joined the company in 1990 and most recently served as vice president, senior business development manager. With Higuchi's promotion, Finance Factors also announced the promotions of Lynette Borden to operations manager and Michelle Nakama to loan closing manager. Borden will supervise the day-to-day operations of all loan transactions as well as ensure the highest level of service and compliance for the branch's loan processing, underwriting and closing. Nakama brings nearly 20 years of mortgage banking experience to her new position. She will be responsible for overseeing the centralized loan closing operation.

» First Hawaiian Bank announced three senior-level promotions. Robert Harrison has been promoted from manager of the Kapiolani Banking Center to executive vice president. Steve Williams has been promoted from the bank's Maui region supervisor to executive vice president. Linda Cornejo has been promoted from executive vice president to manager of the credit administration division. Harrison has more than 16 years of banking experience in Hawaii and on the mainland. He joined First Hawaiian in 1996 as a business banker and was named manager of the Kapiolani Banking Center in 1999. Williams joined the company in 1976 and worked in various administrative positions on Kauai and Maui. Cornejo joined First Hawaiian in 1972 as a management trainee. Her positions have included assistant manager of the main branch, and Kahala branch manager.