HONOLULU (AP) — Hawaiian Airlines filed for Chapter 11 bankruptcy protection Friday, a step executives said was necessary to complete a restructuring begun several months ago.
The carrier, a subsidiary of Hawaiian Holdings Inc., said flights and services will continue without interruption. The parent company was not included in the filing.
"It will be business as usual for the airline as we complete our restructuring," said John Adams, chairman and chief executive officer of the Honolulu-based carrier.
He said tickets will continue to be honored and the airline's frequent flyer program will continue. No new layoffs of Hawaiian's 3,311 employees were planned, although the airline is continuing with its work furloughs of about 150 employees under its previously announced restructuring plan.
The company hopes to complete the restructuring and emerge from Chapter 11 in the fall, he said.
Adams said the company has made significant progress since it launched its restructuring efforts several months ago in response to the travel slowdown since the Sept. 11, 2001, terrorist attacks.
"Despite our best efforts and extensive negotiations, however, we have been unable to reach agreement with certain of our aircraft lessors on reducing our lease rates to market levels," Adams said. "As a result, we felt we had no choice but to seek the protection of the bankruptcy court while negotiations with the lessors continue."
The filing should have no effect on the unprecedented temporary federal antitrust exemption the government granted Hawaiian and its smaller rival Aloha Airlines late last year. That exemption, intended to help the ailing carriers through the difficult downturn following Sept. 11, allows the airlines to coordinate on interisland capacity to avoid duplication of flights. Both airlines had tried unsuccessfully to merge earlier in 2002.