SF Gate: Aloha Airlines says it may sue Hawaiian Airlines

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Thursday, April 4, 2002 (AP)
Aloha Airlines says it may sue Hawaiian Airlines
JAYMES SONG, Associated Press Writer


   (04-04) 20:21 PST HONOLULU (AP) --
   The head of Aloha Airlines said Thursday the carrier may sue rival
Hawaiian Airlines over a breakup fee contained in the agreement of their
failed merger.
   Glenn Zander, Aloha's president and chief executive officer, emphasized
Aloha is "alive and well," during a news conference to announce two new
routes to the West Coast.
   Aloha will begin a daily nonstop flight between its hub in Honolulu to
Burbank, Calif., on June 1 and Vancouver, British Columbia in Canada on
June 15.
   Zander said the possible lawsuit involves a $4 million breakup fee, which
called for $3 million going to Aloha and $1 million for Turnworks Inc., a
Texas-based company working to merge the two carriers.
   Zander said he believes the breakup fee agreement was not fulfilled.
   "Not surprisingly, Hawaiian takes an opposite point of view," he said. "=
So
we do have attorneys looking at it, we are considering initiating
litigation. We have not done so as yet, we're merely considering it and at
the appropriate time we'll make that decision."
   Hawaiian spokesman Keoni Wagner said last month that Hawaiian feels that
no penalties would be accrued by any of the parties.
   Meanwhile, Zander said Aloha will continue with its West Coast expansion
plans that were made before the planned merger and Sept. 11.
   Aloha employees who were laid off following Sept. 11 will also be recall=
ed
and some "marginal" hiring may also happen, Zander said. There are 31
flight attendants and four pilots who remain on furlough.
   "When it's all said and done, they will all have been recalled," he said.

On the Net:
   Aloha Airlines: www.alohaairlines.com
   Hawaiian Airlines: www.hawaiianair.com/

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Copyright 2002 AP

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