Pay raise for Hawaiian Airlines CEO

[Freight Dog]

Yum, I like pink ooze.

Courtesy of Gate Gourmet....

 

[Dan Roman]

Gotta admit though, I don't like it much the way you put it when you say "like we are in the same boat...." That sounds somewhat condescending. You guys were pretty well bailed out of some pretty nasty crap over there. It's not like you're the next SWA.



AQ we both no better than to take pot shots, it's just an exchange of ideas and it's pretty easy to be misunderstood. I guess my point is that it's my perception that you guys have been lead to believe by numerous comments from Zander that "Hawaiian is hurting", "their 717's are too costly" "were stronger" etc etc. Ive lost count of some of the garbage I've heard attributed to Zander. During the merger he actually said "we're saving Hawaiian"! I don't think we want to go back and forth, but when you say "it's not like your the next SWA" it makes me think you've been fooled by some of the anti-Hawaiian propaganda that has come from your management. I loved the one when we entered bankruptcy Zander said in the Advertiser that "I guess we had a better plan". Again our bankruptcy had nothing to do with lack of operating profits and everything to do with Adams taking 30 mil out of the airline during a slow period and trying to play hardball with Boeing.

Here's some figures from this months issue of Airways magazine (Hawaiian is the cover story), they outlined what I'm saying pretty well.

2003 77.5 million operating profit on revenue of 706.1 million
2004 70.0 million operating profit on revenue of 764.0 million

an operating profit margin 9.4%-higher than ANY US major airline (including SWA).
The closing sentence, "Hawaiian's 2 year reorganization-albeit at $24 mil the costliest in the history of Hawaii-has resulted in the transformation of a very good airline into a strong one" is pretty accurate.

Keep in mind that we have over 150 million unrestricted cash, have paid out almost 24 million in Bankruptcy charges and they have put over 30 million into the pilots retirement (it's no longer underfunded and going forward, the younger pilots pilots who are switching to a DC plan have a backstop of 17%, according to ALPA, the highest DC plan in the industry)

This is not to say how wonderful we are compared to anyone else, I'm fully aware how volatile this industry is and none of us can afford to get smug. But I will try and keep the record straight. Our reps have done an excellant job and we are finally well managed. How long it lasts, who knows? A lot of propaganda came out of the "merger of equals" crap. I was fine with the fact that AQ was out of money and lets just merge the two and keep everyone working, I think we would have been stronger under Breneman than Adams, but it got ugly, some from our side and some from your side. My guess is you and I could have sat down and worked out a compromise a lot easier than the mob mentality that was going on between the two groups. Now of course, thing are different, we have to protect our furloughed guys and IF the rumors are true, it's not a merger per say, but the purchase of some assets.

I truly hope the best for you guys, A LOT can happen as we have proven, but I have to stand up for Hawaiian if I feel it's being misrepresented and an awful lot of lies and misrepresentations have came out of Zanders mouth during his tenure. Hawaiian has proven that a Hawaii based company can be succesful when well run.

 

[XOXO]

You can bet that flicker, mdanno, myself, and the rest of the furloughees will fight with everything we have to preserve our places on the HA seniority list.

Hey HAL,

Grandiose illusions of Hawaiian acquisitioning Aloha isn't going to help your plight with seniority list issues. I really hope the best for you and also Hawaiian but your gripe is with your own pilot group. I’m sure HAL pilots picking up overtime to the tune of working 100 hours a month isn’t getting you furloughed guys off the street any faster. Aloha will survive just as they always do and I would hope you could focus on the real problem with your unemployment.



Best of luck to you and I hope you will be back soon!



Maloha

 

[islandhopper]

Hey HAL,

Grandiose illusions of Hawaiian acquisitioning Aloha isn't going to help your plight with seniority list issues. I really hope the best for you and also Hawaiian but your gripe is with your own pilot group. I’m sure HAL pilots picking up overtime to the tune of working 100 hours a month isn’t getting you furloughed guys off the street any faster. Aloha will survive just as they always do and I would hope you could focus on the real problem with your unemployment.



Best of luck to you and I hope you will be back soon!



Maloha

Ouch! Looks like Dr Obvious is back in the office!

 

[RJP]

Mr. Banmiller has stated many times his "templete". He wants to switch the -700s with 757s and then add more destinations to increase revenue.
Keep in mind he owns 5% of AQ stock and gets a big bonus when AQ exits BK. I don't see how selling off a few pieces of AQ would help him.

Not flame bait here, but has anyone else heard the story that Banmiller may have (after filing Ch.11) negotiated a $2 million bonus for himself if AQ files CH.7?

Sure hope that's not true.

 

[808]

That's true about the extra flying, good point.

 

[FlickerFade]

While this "guys picking up open time an bidding max lines hurts furghloughees" is a popular rallying cry, it is just not valid.

The # of pilots activated is a factor of the Staffing Formula. "we" gave concessions to this formula in '03 and now '05. If noone flew over min hours, the reserves would get slammed, there would be more guys called in on days off, but unless the staffing formula is adjusted, there would be no recalls from furlough.

Nice try, but it is just not a valid issue. We'll get recalled when the airline expands. A few guys will come in and go out due to retirements eventually, but that is all.

So, Strangebrew, islandhopper, and 808. You are wrong.

 

[Dan Roman]

island hopper,
I don't know were you get Hawaiian Aquiring AQ or parts of as "grand illusions". Will it happen? Who knows? But the owners of Hawaiian (Ranch Capital) could if they wanted to. They are a large hedge fund that has a lot of cash to invest in whatever they think will provide a good return.
Now before you start jumping up and down about Hawaiian vs AQ, I think there is a much bigger picture than yours or my company. The whole airline industry is up for grabs right now, at a price that has never been cheaper. My belief is the next few years are going to see numerous spin offs and aquistitions. There are money people out there looking at the whole industry and what can they cherry pick to make a new competitive airline. As a whole, this industry isn't working. UAL was a failing airline, they seem to be positioning themselves for future survival. Continental not long ago said Air Mic was for sale. My guess is there is more than just Hawaiian talking about buying parts of AQ. Who's to say Banmiller isn't working a multi faceted deal with another airline? You mark my words, what will soon transpire will be a lot more complex than what we are speculating on. So here's my guess. I think your being sold to a mainland airline (Alaska?) and your inter-island is being spun off to make the deal work.

 

[Dan Roman]

BTW flicker fade is exactly right. People who don't work at Hawaiian are unaware of how our staffing formula works so it's silly to make a comment that our guys are keeping furloughed guys out by flying extra. Most bid line holders are flying about 80 hrs a month, The ones who fly more are taking it from the reserves. Our staffing formula stays constant whether the reserves fly 60 or 20 hrs.

 

[Hugh Jorgan]

The ones who fly more are taking it from the reserves. Our staffing formula stays constant whether the reserves fly 60 or 20 hrs.

I don't care what airline you work for, Your staffing formula is going to be based on an assumption that guys will take extra flying. For every guy that takes an open flight, that's one less reserve guy used. One less reserved guy used on a regular basis results in one less reserve guy needed based on any formula. When flights get cancelled because the reserves are used up and there are guys on the street, they will call a guy off the street.
Simple as that.
To not believe that taking open time doesn't hurt the guy on the street, I'd say, is naive.

If you can get your group to stop picking up open time, you'll see a few phones ringning right away.