http://www.indystar.com/article/20090219/BUSINESS/90219014/1003/BUSINESS Airline pays Republic, avoids default Star report Posted: February 19, 2009 A financially troubled Hawaiian airline has paid business partner Republic Airways a belated $300,000 to avoid having the Indianapolis-based carrier seize its planes and other assets. Bill Boyer, Mokulele's chief executive officer, told the Honolulu Advertiser newspaper that it made a $300,000 payment to Republic to avoid default on an $8 million loan. Republic said Wednesday that Mokulele had until the end of the business day to make the payment or face a potential takeover. Advertisement Boyer said that employees agreed to defer paychecks until next week to help the company make its interest payments. Over the longer term, Boyer said the company is holding talks with outside investors. He said Mokulele may hold a private placement to attract new capital. Republic has provided daily interisland service under the Mokulele brand since November under a wet-lease agreement in which it provides the aircraft and crew to Mokulele. The deal, which partially filled the void left by the March 31, 2008 shutdown of Aloha Airlines, called for Republic to provide at least three 70-seat Embraer 170 jets and an $8 million line of credit, the Advertiser reported. Mokulele, based in Kailua, Kona on the Big Island, has been flying in the Islands since 1998. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".