Hawaiian Airlines CEO resumes talks with creditor

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Hawaiian Airlines CEO resumes talks with creditor

HONOLULU (AP) =97 The chairman and chief executive of Hawaiian Airlines on=
=20
Tuesday resumed talks with the company's main aircraft lessor while a=20
federal bankruptcy judge continued to weigh whether an independent trustee=
=20
was needed to oversee the carrier's financial reorganization, a spokesman=20
said. Hawaiian spokesman Keoni Wagner confirmed that John Adams had been=20
"communicating" with Boeing Capital Corp. officials but said he could not=20
comment on the nature of the talks. Boeing spokesman Russ Young said he was=
=20
unaware of any specific communication from Adams on Tuesday but added that=
=20
both sides have been in negotiations to try and settle their differences=20
since bankruptcy proceedings began. "We are certainly still willing to talk=
=20
about alternatives," Young said. "We have not seen anything that we could=20
agree to." Last week, after a two-day hearing on a motion by Boeing to have=
=20
a trustee appointed, U.S. Bankruptcy Court Judge Robert Faris urged both=20
sides to continue negotiations to reach an agreement before he issued his=20
decision.

Seattle-based Boeing Capital, the financial arm of Boeing, has sought to=20
have a trustee appointed to oversee daily operations, accusing Adams and=20
the airline's board of directors of insider dealings and mismanagement that=
=20
have led to the carrier's financial hardship. Hawaiian, which filed for=20
protection from its creditors on March 21, has denied any wrongdoing or=20
mismanagement. Executives contend bankruptcy was forced on the carrier by=20
Boeing's refusal to renegotiate airplane lease agreements that were signed=
=20
between 1999 and 2001 =97 before the downturn in air travel after the Sept.=
=20
11, 2001, terrorist attacks. Hawaiian says that having a trustee appointed=
=20
would place a stigma of failure on the airline and drive away business at a=
=20
crucial time for bookings and delay implementation of what it believes is a=
=20
sound business plan for saving the airline. Faris said that the appointment=
=20
of a trustee or an examiner, who would investigate specific transactions,=20
was likely and that he was leaning against Hawaiian's request to reject the=
=20
motion completely.


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