Hawaiian bankruptcy exit delayed

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Bankruptcy Judge Robert Faris has called on Hawaiian Airlines and its pilots union to resume negotiations and reach another labor agreement.

Faris set a deadline of April 13, failing which both sides have to abide by a court-ordered contract. This deadline means Hawaiian Airlines will not be able to emerge from Chapter 11 on Friday of this week as it had wanted.

A hearing Tuesday was a follow-up to the pilots' vetoing a tentative agreement that their union leadership had negotiated with the airline management.

Hawaiian Airlines has ratified labor contracts from all of its other unions, finalized its payment to the IRS and is set to exit bankruptcy if the pilots agree to a new contract.

The pilots said they felt management was getting bonuses and other pay increases as part of the bankruptcy while its members have to work more to keep their pay.

The airline contends that it needs to keep up with industry rates to retain quality managers.

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This page contains a single entry by published on April 1, 2005 9:30 AM.

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