Business Briefs
Star-Bulletin staff & wire reports




Companies settle dispute over sale of Island Air

The San Francisco-based owner of Island Air and Aloha Airlines' parent company have settled over several issues resulting from sale last year of the commuter carrier.

Details of the settlement were filed under seal in federal Bankruptcy Court and were not available. A hearing is set for Aug. 16.

Gavarnie Holding Inc. bought Island Air from Aloha Airgroup Inc. Gavarnie alleged that Aloha had breached its obligations under a backroom services agreement, a joint marketing agreement and for failing to provide Island Air accounting, marketing and other agreed-upon services. Aloha said Gavarnie had failed to make loan payments as agreed.

EEOC sues Lockheed Martin Corp.

Lockheed Martin Corp., the largest U.S. defense contractor, permitted a hostile work environment in which an employee was subjected to racist comments and threats, according to a lawsuit filed by the U.S. Equal Employment Opportunity Commission.

The company failed to act when the employee, Charles Daniels, an electrician at a U.S. Air Force base in Hawaii, complained of harassment, the EEOC said in the suit, filed yesterday in U.S. District Court in Hawaii. Lockheed retaliated against Daniels for speaking out by laying him off in 2001, the commission alleged.

While employed at Lockheed, Daniels was subjected to racial slurs, harassment, threats of violence and retaliation, which left him depressed and afraid for his safety, the EEOC said. William R. Tamayo, an EEOC attorney in San Francisco, said the government is seeking back pay and money damages for Daniels and a court order to prevent future discriminatory acts.

A Lockheed spokesman said the company has not seen the lawsuit but has strong programs and policies in place to prevent discrimination.

Maui Marriott Resort cuts staff

The Maui Marriott Resort and Ocean Club will cease breakfast service and terminate 21 employees on Oct. 7, following its conversion to a time-share operation.

The company will permanently dismiss the restaurant's cooks, wait help, cashiers and other employees.

Aloha Petroleum will fight for Mahalo deal

Aloha Petroleum Ltd. will continue to oppose the Federal Trade Commission's attempt to block the company's acquisition of 18 Mahalo brand gas stations on Oahu, a company spokeswoman said.

The company faced a deadline yesterday to inform the U.S. District Court in Honolulu whether it would continue to fight the FTC's request for a court order barring the deal.

The FTC claims the deal, which includes the acquisition of a full interest in an Oahu gasoline import terminal, would reduce retail and wholesale competition throughout the state. Aloha has said competition would not be affected.

Cingular plans layoffs in local restructuring

Cingular Wireless intends to lay off employees from its Mililani location as it continues restructuring that began March 7.

The next round, expected to affect a single associate human resources consultant, will take effect Sept. 27. Cingular plans to continue scheduling employee terminations every 15 days until its restructuring is complete.

In other news ...

A National Labor Relations Board hearing on allegations of unfair labor practices at Turtle Bay Resort, the only major hotel on the Oahu North Shore, will continue Oct. 18.

A federal administrative judge began listening to allegations earlier this month, but had to return to California to fulfill other commitments.

The judge has already heard allegations of Turtle Bay union members, who say their labor rights have been violated. When the case resumes in October, Turtle Bay Resort will begin presenting its side.


[Hawaii Inc.]



>> Linda Woo has joined the Honolulu Star-Bulletin/ MidWeek advertising department as director of Strategic Sales and New Business Development.

Woo was formerly with The Honolulu Advertiser as film industry specialist and national sales account executive.

She spent the past 14 years with the Advertiser and the Hawaii Newspaper Agency and before that was with MidWeek for five years.

"Linda's extensive newspaper sales experience provides the Honolulu Star-Bulletin/MidWeek a wonderful opportunity to grow our sales in key segments of business," said Dave Kennedy, vice president of marketing. "As we continue to grow, it is key for us to bring in personnel with local market knowledge that not only have a newspaper sales and marketing background, but are long-term residents that are involved in the community."

» Armstrong Builders Ltd. has appointed Jim Keller as construction division president. He has worked for the company for 20 years.


» Desert Island Restaurants has promoted Alex Kirley to sales and marketing regional director. She will be responsible for overseeing sales, group sales, marketing, advertising, promotions and special events. She currently serves as president of the Hawaii Hospitality Sales & Marketing Association.

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