Aloha Aitlines Drops More Routes, Planes

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ENOUGH
The airline drops four more planes and
terminates a San Diego route
Aloha just started flying

By Dave Segal
dsegal@starbulletin.com


Aloha Airlines will cut four planes from its mainland flights next month, eliminating the Honolulu-San Diego route the carrier initiated in April.

The changes are part of Aloha's efforts to become profitable and emerge from bankruptcy reorganization.

http://www.alohaair.com/Aloha also is proposing a new compensation and severance package for its president and chief executive, David Banmiller, to entice him to remain with the airline at least until it emerges from bankruptcy.

Aloha proposes to extend the term of Banmiller's contract another year to Dec. 31, 2010, increase his housing allowance to $90,000 from $59,400 and provide him lifetime first-class travel on Aloha Airlines. No changes are proposed for Banmiller's base salary.

Banmiller is receiving $455,400 in salary and could get severance pay of more than $1.1 million if he is not retained after the carrier comes out of reorganization, according to an Aloha bankruptcy filing. A hearing on the matter is scheduled for Tuesday in Bankruptcy Court.

Banmiller, who currently is not receiving his housing allowance because he lives in corporate housing, also own 5 percent of stock in parent company Aloha Airgroup Inc., according to the filing. In addition, Banmiller is provided with a car and is eligible for a success fee if the company emerges from bankruptcy.

Aloha, which had 27 planes when it filed for bankruptcy in December, earlier this year returned two Boeing 737-700s that it used on trans-Pacific routes. With the return of four more planes -- all used for mainland routes -- the carrier has reduced its fleet by nearly one-fourth to 21 aircraft.

One of the four planes is being repossessed by Boeing Capital Corp. after Aloha was unable to renegotiate a lease. A similar disagreement between Hawaiian Airlines and Boeing Capital plagued Hawaiian's bankruptcy reorganization, which the carrier emerged from last month.

Aloha spokesman Stu Glauberman said the airline is returning the three other planes to GE Capital because they weren't needed for the airline's new fall schedule.

"The timing of this shouldn't affect our schedule or the passengers who have booked reservations on us," he said. "The reduction in fleet comes at a time when we traditionally reduce flying in the fall when there's less demand."

The airline, which still has a direct route to San Diego from Maui, began its Honolulu-San Diego service on April 3. The last flight will be Aug. 21. Last month, Aloha announced it was dropping its Reno-San Diego service.

Glauberman said the short-lived Honolulu-San Diego flight "was not as successful as we had hoped."

"We probably didn't give enough time to grow it, but we had to drop something to make the (airline's) eight-plane (trans-Pacific) schedule work," Glauberman said.

As part of the new changes, Aloha's Oakland-Las Vegas service will switch to Orange County-Las Vegas on Aug. 22.

Aloha's reduced fleet will consist of eight 737-700s for trans-Pacific routes and 10 737-200s for interisland flights. In addition, Aloha has three 737-200s for cargo service.

The airline said it is seeking to improve Banmiller's severance package because he has little job security and he may be recruited by other employers.

"By working tirelessly to attract equity investment to save the airline and the jobs of its 3,600 employees, Banmiller may be increasing the likelihood that he will be replaced as president and chief executive officer should a new investor assume control of the airline," the filing said.

Banmiller, hired a month before Aloha filed for bankruptcy, initially was to get $562,222 but he never received that base salary because of a 10 percent pay cut that also affected other Aloha executives. Another 10 percent was taken off later to leave Banmiller with his current base salary of $455,400.

If Banmiller leaves Aloha after the airline emerges from bankruptcy due to "certain triggering events," he will receive two years pay at the original rate of $562,222. If he involuntarily leaves before Aloha is out of bankruptcy, he will have an administrative bankruptcy claim against the airline limited to two years at his current $455,400 base pay.

Banmiller will not be entitled to an administrative claim if he leaves the airline voluntarily during the reorganization. If he is hired by another company, his new salary will be adjusted so that it does not exceed the annualized amount of the severance he would receive from Aloha.

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av8tortype

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Yeah, I read that story this morning and my first thought was ... wtf does Banmiller bring to the program besides a history of closing down companies or sifting through the leftovers. Ok, he brought in additional capital ... but it was from his bottom feeding buddies who collaborated with him to take ownership of Aloha. This doesn't warrant a sweet deal for him in my book.

I can count on one hand the reasons why I would give him or his cronies any credit for a turnaround at AQ ... and have five fingers left over. Give credit where credit is due ... the Aloha employees and customers. Banmiller should give them a big mahalo for their kokua!
 
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English

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Aloha is going to go the way of Sun Country circa 2001. That's all Banmiller knows.
 

Hugh Jorgan

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aspire said:
Banmiller=dumb haole
He doesn't seem all that dumb to me. He's making a killing as the hatchet-man. He'll walk away with his severence package and go onto to the next ailing company, bend them over and leave with his booty. The cycle continues... Dumb haole? Hmmm...I can think of a lot of adjectives to put in front of the haole, but dumb doesn't seem applicable to this slick dick.
 

mdanno808

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So what has the company told you guys regarding furlough's, etc. Are they actually sending 4 more planes back? Do they give you guy's any notice, or do you read this crap in the paper like the rest of us? I hope you guys don't put too many more pilot's on the street. There's enough of us here allready. Good luck.

By the way, how many planes did Banmiller cut Sun country to?
 

RJP

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$455,000 a year? That's it? No wonder Banmiller's chances of leaving are increaing with that sort of minimum wage. I wouldn't stay in his job without $90k a year in housing allowance either.

Disgusting.
 

islandhopper

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aspire said:
Banmiller=dumb haole

Dumb no... Hes more of a fukking haole. Even a MF'in haole. But dumb not.
 

Sleepyhead

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mdanno808 said:
So what has the company told you guys regarding furlough's, etc. Are they actually sending 4 more planes back? Do they give you guy's any notice, or do you read this crap in the paper like the rest of us? I hope you guys don't put too many more pilot's on the street. There's enough of us here allready. Good luck.

By the way, how many planes did Banmiller cut Sun country to?

Furlough letters are suppose to go out this week, for Aug 31 furlough . There will be about 24 more furloughed. The number will probably be a little less because of LOAs and early retirements. The 4 planes the article talked about include ones that are already gone. The -700 fleet will number 8 planes on Aug 22.

FYI, Sun Country went down to 1 airplane.
 

Dopps

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islandhopper said:
Dumb no... Hes more of a fukking haole. Even a MF'in haole. But dumb not.

Aren't you a haole too? What kind of a haole are you?

a) dumb haole
b) fukking haole
c) all of the above
 

islandhopper

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Dopps said:
Aren't you a haole too? What kind of a haole are you?

a) dumb haole
b) fukking haole
c) all of the above

Typically its "B" but I have also been known by a few other adjectives... C'mon no hate now! Why is it never enough to just be a haole?
 

Dopps

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with t
islandhopper said:
Typically its "B" but I have also been known by a few other adjectives... C'mon no hate now! Why is it never enough to just be a haole?

It's the sad truth.......

Why do we have to be haoles? You don't see us calling these people japs, dinks, zipperheads, gooks, monkeys etc. How about skipping the racial epithets?
 

dash8driver

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Dopps said:
with t

It's the sad truth.......

Why do we have to be haoles? You don't see us calling these people japs, dinks, zipperheads, gooks, monkeys etc. How about skipping the racial epithets?

because its the only way they know how to cope with their self esteem...
 

islandhopper

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Dopps said:
with t

It's the sad truth.......

Why do we have to be haoles? You don't see us calling these people japs, dinks, zipperheads, gooks, monkeys etc. How about skipping the racial epithets?

I didnt know "zipperhead" was a racial slur? I often used it just to describe brain dead fools.
 

RJP

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At least he can move out of that $42k/year ghetto now!

Posted on: Wednesday, July 27, 2005

Aloha CEO's contract OK'd

By Rick Daysog
Advertiser Staff Writer


A federal judge has approved Aloha Airlines Chief Executive Officer David Banmiller's employment contract, which calls for him to receive more than $500,000 a year in salary and housing allowances.


U.S. Bankruptcy Judge Robert Faris said yesterday that Banmiller's compensation package was reasonable given the importance of his role in steering Aloha through the bankruptcy process.


"No one has questioned Mr. Banmiller's experience, his expertise and the vital role he is playing in this case," said Faris.


Banmiller will earn $455,400 in base salary this year and will be entitled to more than $1 million in severance over two years should he lose his job if Aloha emerges from bankruptcy under new ownership.


Banmiller, who owns 5 percent of Aloha's stock, also is entitled the use of a car and $90,000 a year in housing allowances. He currently lives in rental housing provided by Aloha at a rate of $42,000 a year.





Attorneys for Aloha's unionized workers objected to Banmiller's severance package, saying it comes at a time when airline employees have taken steep cuts. But Sheldon Kline, Aloha's attorney, defended the contract terms as necessary to retain an executive of Banmiller's background.





Banmiller, who was named Aloha's chief executive officer in November, has more than three decades of experience in the airline industry, including stints as president and CEO of Sun Country Airlines and Pan American World Airways.


Kline compared Banmiller's total compensation with the multimillion dollar packages paid to top executives at American Airlines, United Airlines and Delta Air Lines.


The approval of Banmiller's contract comes as Aloha is seeking new investors or a new owner to emerge from bankruptcy protection.


James Peck, an attorney for Ableco Finance LLC, complained about a "lack of progress" in attracting new capital. Ableco and Goldman Sachs Credit Partners LP in March provided the airline with $65 million in interim financing.

Aloha attorney Paul Singerman disclosed during yesterday's hearing that the airline is in discussions with an investment group, which he declined to name due to a confidentiality agreement. Singerman added that the airline continues to hold discussions with more than 30 potential investors that it has contacted since it filed for bankruptcy in December.





Reach Rick Daysog at rdaysog@honoluluadvertiser.com.
 

av8tortype

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At least he can move out of that $42k/year ghetto now!

Banmiller on business: "Well, when you find a Hawaiian goldmine you keep digging it, right?"
 

English

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RJP said:
Posted on: Wednesday, July 27, 2005

Aloha CEO's contract OK'd

By Rick Daysog
Advertiser Staff Writer




"No one has questioned Mr. Banmiller's experience, his expertise and the vital role he is playing in this case," said Faris.


All I can say is...WHY NOT?

The pilot group needs to get woken out of their shock and do something.
 

slatsnfive

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English said:
All I can say is...WHY NOT?

The pilot group needs to get woken out of their shock and do something.

English is right, If this guy has a history of closing down companies, then the pilot group should get on this guy!
 

Sleepyhead

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slatsnfive said:
English is right, If this guy has a history of closing down companies, then the pilot group should get on this guy!

Really,, and what would you suggest the pilot group do?
That is if we had any control to do anything about him in the first place.

The only person who has final control of everything at AQ at this time.... the BK judge.
 

mdanno808

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After this round of furlough's, what will be the approximate hire date of the junior pilot?
 
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