Hawaiian Airlines files Chapter 11 bankruptcy

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Hawaiian Airlines files Chapter 11 bankruptcy

HONOLULU (Reuters) =97 Hawaiian Airlines Inc. said Friday it filed for=20
Chapter 11 bankruptcy protection after failing to win lease concessions=20
from its aircraft lenders. The 73-year-old Honolulu-based carrier, the 12th=
=20
largest in the United States, listed more than $100 million of assets and=20
more than $100 million of debts in its voluntary petition filed with the=20
U.S. Bankruptcy Court for the District of Hawaii. Hawaiian, which has been=
=20
trying to restructure for several months, said it hopes to exit bankruptcy=
=20
in the fall. Its parent, Hawaiian Holdings Inc., did not file for=20
protection from creditors. "Despite our best efforts and extensive=20
negotiations...we have been unable to reach agreement with certain of our=20
aircraft  lessors on reducing our lease rates to market levels," Chief=20
Executive John Adams said in a statement. The carrier "had no choice" but=20
to file Chapter 11, he said.
The carrier listed Wells Fargo Bank as trustee as its largest unsecured=20
creditor, with a $10.3 million claim. Air travel has slumped because of the=
=20
weak economy and war fears. United and U.S. Airways sought Chapter 11=20
protection last year, and analysts said others might follow. Colombian=20
airline Avianca and its U.S. unit filed for Chapter 11 on Friday. Hawaiian=
=20
Airlines said on March 14 it had been seeking $15 million in lease=20
concessions from Boeing, the world's largest commercial aircraft maker. The=
=20
company plans to have 16 wide-body 767-300ERs in its fleet this year. The=20
airline did not specify whether the Boeing leases were a factor in its=20
bankruptcy filing,. Boeing was not immediately available for comment. Talks=
=20
with lessors will continue, Adams said. Hawaiian Airlines plans to honor=20
all tickets and pay vendors normally, and said the bankruptcy filing should=
=20
not affect code-sharing agreements. Hawaiian shares traded Friday afternoon=
=20
on the Nasdaq unchanged at $1.48.


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