Hawaiian, Aloha In Merger Talks? Source: 'It's More Convoluted Than That' Updated: 10:28 p.m. HST December 18, 2001 HONOLULU -- A major annoucement is expected Wednesday that could determine the future of Hawaii's two major interisland air carriers. KITV 4 News has learned that Hawaiian and Aloha airlines will make the announcement late Wednesday afternoon, though the exact nature is not known. When asked if the two airlines were preparing to merge, a high-placed source at one of the airlines said, "It's more convoluted than that." Sources told KITV 4 News that former Continental Airlines president and chief operating officer Greg Brenneman will be brought in to run the merged airline, if Aloha and Hawaiian officials are able to finalize a reorganization (click here for more). According to airline experts, privately-owned Aloha Airlines has been harder hit financially than Hawaiian after the Sept. 11 attacks, which has devastated the entire airline industry. In fact, Aloha reported an operating loss of $1.25 million to the federal government on Sept. 30, the end of the third quarter. Aloha's losses after that date have not been disclosed. But sources said that the airline was within one to three months of declaring bankruptcy. Hawaiian Airlines remained profitable through the end of the third quarter, reporting a $29 milllion profit. Sources said that Hawaiian will assume all of Aloha's debts, which are said to be "considerable." Airline analysts said the merger, if allowed by federal regulators, could potentially raise the price of a round-trip interisland ticket from about $110 to $150. Sources at Hawaiian familiar with the deal said "no one at either airline" is going to be happy about the changes being made. A merger would most likely result in people losing their jobs to eliminate job redundancies. Sources told KITV 4 News that unionized employees of both airlines have been told to expect 10 percent of them to be furloughed, with the hope that they would be re-hired if service expands. Aloha laid off 250 workers Sept. 20, immediately following the Sept. 11 attacks. Hawaiian laid off more than 400 workers about a week later. According to sources, Aloha Airlines CEO Glenn Zander will not be a part of the new company, but will receive a multi-million dollar severance package, known in the industry as a "golden parachute." The future of Hawaiian CEO Paul Casey is uncertain. Spokespeople for both airlines did not return phone calls from KITV 4 News. An official with the union representing Hawaiian Airlines' pilots would not discuss questions about whether his union has been called into meetings with management to discuss the airline's future. Sources emphasized that any deal could fall through and be put off for any number of reasons. http://www.thehawaiichannel.com/hon/money/stories/money-113179620011218-2112 51.html