Hawaiian Airlines Trustee
Joshua Gotbaum announced today that the airline and Boeing Capital
Corporation have reached agreement on new lease terms under which Hawaiian
will continue to operate all the Boeing-owned aircraft in its fleet.
Hawaiian and Boeing have also reached an agreement, negotiated jointly
with RC Aviation, LLC, a significant investor in Hawaiian’s parent
company, Hawaiian Holdings, Inc. (“Holdings”), concerning Boeing’s claims
in the bankruptcy. The agreements must be filed with and approved by the bankruptcy court.
Gotbaum will request a court decision by September 30th. If the court
approves the agreements, Boeing has agreed separately to sell its claim to
RC Aviation, which then plans to vote the claim in favor of the plan of
reorganization it has jointly proposed with Holdings, Hawaiian’s Official
Committee of Unsecured Creditors, and the Trustee.
“This agreement is good for both Hawaiian Airlines and Boeing. It means we
have the aircraft we need at lease rates we can afford,” Gotbaum said.
“It’s another important step toward Hawaiian’s successful exit from
“We reviewed a number of plans to reorganize Hawaiian Airlines and found
the plan proposed by RC Aviation and the Trustee to be a comprehensive
financial solution that strikes a good balance among the interests of
Hawaiian Airlines, Boeing Capital and all other stakeholders,” said Scott
Scherer, Boeing Capital’s VP and General Manager—Aircraft Financial
Services. “We look forward to Hawaiian’s prompt emergence from bankruptcy
and to continuing our long and valued relationship with the airline.”
Lawrence Hershfield, the managing member of RC Aviation and the Chief
Executive Officer of Holdings, said that, “Reaching a mutually beneficial
arrangement with Boeing should facilitate a quick emergence from Chapter
11 and enhance the long-term relationship between Hawaiian and Boeing.”
Hawaiian currently leases 11 Boeing 717-200 aircraft for interisland
flights and three Boeing 767-300ER aircraft for transpacific service from
Hawaiian previously received court approval to assume renegotiated lease
agreements for the other aircraft in its fleet with Ansett Worldwide
Aviation Services, which owns seven Boeing 767-300ER aircraft operated by
Hawaiian, and with International Lease Finance Corp., which owns four
767-300ER aircraft operated by Hawaiian.
The Trustee and Holdings filed an amended Joint Plan and disclosure
statement on September 9, 2004. The hearing on approval of that disclosure
statement will be conducted before the Bankruptcy Court on October 5,
2004. They anticipate further amendments of the plan and disclosure
statement to reflect the terms of the agreement with Boeing.