SOURCE: Honolulu Star-Bulletin http://starbulletin.com/2004/08/03/business/index.html Former leader of American Airlines invests $2M in Hawaiian Air Don Carty will join the board of directors of the local carrier By Dave Segal dsegal@xxxxxxxxxxxxxxxx Don Carty, the former head of American Airlines, has purchased $2 million in stock of Hawaiian Airlines' parent and has been appointed to fill a vacancy on the board of directors. Carty became involved in the year-old bankruptcy case in March when John Adams, chairman and chief executive officer of Hawaiian Holdings Inc., announced that Carty agreed to become nonexecutive chairman and an investor in the airline under Hawaiian Holdings' proposed reorganization plan. But Carty's future role in the company had been unclear since June when an investor group formed by San Diego-based Ranch Capital LLC purchased 10 million shares from majority shareholder AIP LLC and Adams in a $41.4 million deal. Carty, who paid about $5.70 a share for 351,062 shares in the company, bought the stock separately from Hawaiian Holdings and is not part of Ranch Capital's investment group, RC Aviation LLC. Carty will join Ranch Capital partners Lawrence Hershfield and Randall Jenson on the board but not as chairman. Hershfield is now the CEO and president of Hawaiian Holdings while Jenson is the chief financial officer, treasurer and secretary. "We believe his experience will be very helpful, and that's why we agreed to sell him shares," Hershfield said. Hawaiian Holdings consultant Mo Garfinkle, who is advising Ranch Capital after previously assisting Adams and his entities, said the role previously envisioned for Carty as a mentor to Hawaiian Airlines President Mark Dunkerley isn't going to change. "He's still going to fulfill the function we wanted him to, and help with airline relationships," Garfinkle said.