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Hawaiian Airlines, Inc. is the largest airline in Hawaii. It is the 8th largest commercial airline in the US, and is based in Honolulu, Hawaii. The airline operates its main hub at Honolulu International Airport and a secondary hub out of Kahului Airport on the island of Maui. Hawaiian Airlines is owned by Hawaiian Holdings, Inc. Mark Dunkerley is the President and Chief Executive Officer of Hawaiian Holdings.
Hawaiian has never had a fatal accident in its entire history, nor has it ever had an accident with a hull loss, and is the oldest US carrier with such a distinction in both fields. Hawaiian Airlines was the number one on-time carrier in the United States from November 2003 until November 2006, when rival Aloha Airlines took the number one spot, pushing Hawaiian to a close second. The airline has also frequently been number one in fewest cancellations, baggage handling, and fewest oversales. Hawaiian Airlines has been rated the best carrier serving Hawaii by Travel + Leisure, Zagat, and Condé Nast Traveler.
Early years (1929–1966)
Convair 640 turboprop airliner of Hawaiian at Honolulu in 1971. The airline operated Convairs from 1952 until 1974 Inter-Island Airways, the forerunner of the airline which is now known as Hawaiian Airlines, was incorporated on January 30, 1929. Inter-Island Airways, a subsidiary of Inter-Island Steam Navigation Company, began operations on October 6, 1929 with a Bellanca CH-300 Pacemaker, providing short sightseeing flights over Oʽahu. Scheduled service began a month later on November 11 using Sikorsky S-38s with a flight from Honolulu to Hilo, via intermediary stops on Molokai and Maui.
On October 1, 1941, the name was changed to Hawaiian Airlines when the company phased out the older Sikorsky S-38 and Sikorsky S-43 flying boats. The first Douglas DC-3s were added to the fleet in August 1941, some examples remaining in operation until final disposal in November 1968.
Modern pressurised equipment was introduced from 1952 in the form of the Convair 340. Further Convair 440s were added in 1959-60, most of the Convairs being converted to turbine propellor power in 1965-67. The last were sold in 1974.
Jet age and route expansion (1966–1994)
In 1966 jet travel started with the acquisition of Douglas DC-9 aircraft, which cut travel times in half on most of the routes. In 1984 the company began to operate charter services to the South Pacific using Douglas DC-8 aircraft, and soon added Lockheed L-1011 aircraft to the fleet for West Coast services. As the west coast market grew, the South Pacific market shrunk, and service was reduced when the company's DC-8s were retired in 1993; and when the L-1011s were replaced by the McDonnell Douglas DC-10 in 1994. According to State of Hawaii historical records, Hawaiian also constructed the Kapalua Airport in 1987 on the western side of Maui. The airline served this small airfield with de Havilland Dash 7 four engine turboprops. Kapalua Airport was acquired by the state in 1993, and Hawaiian discontinued service to the airport with the retirement of the Dash 7 fleet in 1994. The retirement of the Dash 7 in 1994 also resulted in the airline operating an all-jet fleet.
Aircraft equipment change (1994–2003)
The DC-10s were obtained from American Airlines, who continued to provide maintenance on the aircraft. An agreement with American also included converting to American's SABRE reservation system and participation in American Airlines' AAdvantage frequent flyer program. The DC-10s were retired between 2002 and 2003. The company replaced these leased DC-10s with 14 leased Boeing 767 aircraft during the fleet modernization, and replaced the DC-9s with Boeing 717 aircraft. The Boeing aircraft featured an updated rendition of the company's "Pualani" tail art, which had appeared on its Douglas aircraft since the 1970s.
Further expansion (2005–2012)
Passengers boarding a Hawaiian Boeing 717–200 at Kona International Airport for an inter-island flight On October 1, 2005 Hawaiian Airlines began nonstop daily flights from Honolulu to San Jose, California. This made San Jose the fifth gateway city in California to be serviced by Hawaiian; the others were Los Angeles, San Diego, Sacramento and San Francisco.
On May 4, 2006 Hawaiian Airlines expanded service between the U.S. mainland and Hawaii in anticipation of the induction of four additional Boeing 767–300 aircraft, primarily focused on expanding non-stop service to Kahului Airport from San Diego, Seattle, and Portland. Additional flights were also added between Honolulu and the cities of Sacramento, Seattle and Los Angeles.
On July 24, 2007 Hawaiian Airlines and Air New Zealand signed a $45 million contract for Air New Zealand to perform heavy maintenance on Hawaiian's Boeing 767 aircraft. The contract is to last for five years. Air New Zealand stated that this opportunity will also give a chance for them to build their expertise working on 767s.
In March 2008, the airline launched nonstop flights to Manila in the Philippines, the first major international expansion since it emerged from bankruptcy protection in June 2005. In response to the closure of ATA Airlines and Aloha Airlines, the airline began flights to Oakland on May 1, 2008.
In August 2007 the Seattle Seahawks became the second sports team to begin using Hawaiian Airlines to travel to games. The Oakland Raiders, also of the NFL, have been flying Hawaiian Airlines since the 1990s. The two teams fly on Hawaiian's Boeing 767s to and from all their games. Two of Hawaiian's Boeing 767 aircraft have been fitted with decals of logos from the Seahawks and the Raiders.
On February 16, 2010, Hawaiian Airlines sought approval from the U.S. Department of Transportation to begin nonstop flights from its hub at Honolulu to Tokyo-Haneda sometime in 2010. The airline was one of 5 US carriers — the others being Delta, Continental, United, and American — seeking approval to serve Haneda as part of the U.S.-Japan OpenSkies agreement. Approval was granted from USDOT to begin nonstop service to Haneda, Japan. The flight began service on November 18, 2010. In addition, the airline is planning to establish a codeshare agreement with All Nippon Airways. On January 12, 2011, Hawaiian Airlines began nonstop service to Seoul-Incheon, South Korea. On July 12, 2011, Hawaiian added Osaka, Japan to its network.
On March 31, 2011, Hawaiian announced that they will be renovating the check-in lobby of the inter-island terminal at the Honolulu International Airport (Hawaiian's main hub). Hawaiian, the only occupant of the inter-island terminal, will be removing the traditional check-in counter, to install six circular check-in islands in the middle of the lobbies. Those check-in islands can be used for inter-island, mainland, and international flights.
On June 4, 2012, Hawaiian expanded to the east coast with daily flights to New York's John F. Kennedy International Airport.
On August 30, 2012, Hawaiian filed an application with the U.S. Department of Transportation for a nonstop route between Kona and Tokyo-Haneda. This would fill a void that Japan Airlines left when it ceased service to Kona nearly two years ago. However, the US Department of Transportation rejected the airline's application to begin service.
On December 3, 2012, the airline unveiled plans to begin flights to Taipei, Taiwan (Republic of China) beginning July 9, 2013 as part of its aggressive expansion plans.
Further fleet expansion and new subsidiary carrier (2013–present)
On February 11, 2013, the airline started a new venture in the turboprop interisland business, "Ohana by Hawaiian". Service is operated by Empire Airlines using ATR 42 Turboprop airplanes. Service began in Summer 2013 to Molokai and Lanai.
On April 10, 2013, the airline announced its first destination in China, with service to Beijing expected to start on April 16, 2014, pending government approval.
At the same time, the airline announced that it would end service to Manila in the Philippines on July 31, 2013.
Reorganization, Bankruptcy 1, (1993 - 1994)
Due to the airline's increasingly unprofitable operations it filed for Chapter 11 bankruptcy protection in September 1993. During this time the company reduced many of its costs: reorganizing its debt, wrestling concessions from employees, cutting overcapacity and streamlining its fleet by disposing many of the planes it had added to its fleet just a few years earlier.
As part of Hawaiian's restructuring it sold Kapalua Airport to the State of Hawaii in 1993. Hawaiian soon after discontinued service to the airport as it retired its Dash 7 fleet. The retirement of the Dash 7 in 1994 also resulted in the airline operating a more streamlined all-jet fleet as it exited bankruptcy in September 1994.
Reorganization Bankruptcy 2, (2003–2005)
Hawaiian Airlines filed for Chapter 11 bankruptcy protection on March 21, 2003 with operations still continuing, and at the time was overdue for $4.5 million USD worth of payments to the pilots' pension plan. Within the company, it was suggested that the plan be terminated. As of May 2005, Hawaiian Airlines had received court approval of its reorganization plan. The company emerged from bankruptcy protection on June 2, 2005, with reduced operating costs through renegotiated contracts with its union work groups; restructured aircraft leases; and investment from RC Aviation, a unit of San Diego-based Ranch Capital, which bought a majority share in parent company Hawaiian Holdings Inc in 2004.
Hawaiian Airlines to Complete Restructuring Under Chapter 11
Flights and Services to Continue Without Interruption
HONOLULU, Mar 21, 2003 /PRNewswire-FirstCall via COMTEX/ -- Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (Amex: HA; PCX), announced today that, in order to complete a restructuring process begun several months ago to restore the company's long-term financial health, it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Hawaiian Holdings was not included in the filing and will not be a part of the Chapter 11 process.
"It will be business as usual for the airline as we complete our restructuring," said John W. Adams, chairman and chief executive officer of Hawaiian Airlines. Adams said that the company hopes to complete the restructuring and emerge from Chapter 11 in the fall.
"In the meantime, tickets will be honored, maintenance and service will continue at the highest levels, and our HawaiianMiles program will continue to offer fliers significant award benefits. Code-share agreements with partner airlines should not be affected by the filing. Most importantly, customer safety will remain our highest priority. We take great pride in our 73-year record of safety, service and reliability, and we intend to continue to build upon that record."
"This is a moment in time for our company," Adams said. "As the travel experience on most other airlines is eroding, Hawaiian Airlines has a unique opportunity to distinguish itself with its premiere Hawaii service. While most airlines are cutting wages, cutting flight schedules and cutting services, Hawaiian Airlines is introducing new aircraft, new conveniences, new services and new routes."
Adams said that the company has made significant progress since it launched its restructuring efforts several months ago in response to the dramatically changed operating environment after 9/11. "In addition to significant improvements in operating efficiencies throughout our company, we have been successful in working with the unions that represent the majority of our employees and many of our vendors to lower operating costs and create a more viable, competitive business model for the future.
"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," Adams said.
Adams pointed to substantial progress made in achieving key elements of the company's strategic plan. Since June, he said, the airline has:
Increased operating efficiency through the conversion to a new fleet of transpacific and inter-island aircraft.
Lowered labor costs by approximately $15 million annually through productivity improvements in union agreements.
Significantly reduced distribution costs while it improved efficiency and inventory management by eliminating paper tickets, inter-island coupons and conversion to an electronic processing system.
"Clearly we would have preferred to complete our restructuring outside of the Bankruptcy Court, particularly in light of our significant progress to date. A major element of our strategic plan and the key to the future financial health of the company is to mark our aircraft lease rates to market, but without the support of certain of our aircraft lessors, we felt obliged to protect the assets of the company, including the continued use of our aircraft while the restructuring is finalized," Adams said.
He noted that the company has requested Court permission to continue employee wage and benefit programs as usual. It has also requested Court permission to continue customer programs, including its HawaiianMiles frequent flyer program, pay fuel vendors, hotels and other services without interruption and to assume code-share, clearing house and interline airline contracts.
Vendors will be paid in the ordinary course for goods and services provided after the filing date.
The company filed its voluntary petition in the U.S. Bankruptcy Court for the District of Hawaii in Honolulu.
About Hawaiian Airlines
Founded in Honolulu 73 years ago, Hawaiian Airlines is Hawaii's longest- serving and largest airline. The nation's 12th largest airline, it is also the second-largest provider of passenger service between the West Coast and Hawaii.
Hawaiian Airlines currently provides up to 30 nonstop daily flights between nine cities on the U.S. mainland and Hawaii, along with weekly service between Honolulu and American Samoa and Tahiti. The airline also provides charter service between Honolulu and Anchorage, Alaska. In addition, Hawaiian Airlines is participating in the federal government's Civil Reserve Air Fleet, transporting Armed Forces personnel between the U.S. and points in the Pacific and Middle East.
Hawaiian Airlines takes great pride in its innovative onboard service programs that highlight and promote the people and culture of Hawaii. The airline has earned numerous international awards for service in recent years, including the 2001 Zagat Survey's award for Best Overall U.S. Airline in the Premier category, and the 2001 Diamond Award for In-Flight Service from Onboard Services magazine. Hawaiian Airlines was rated third highest in "Travel & Leisure" magazine's most recent ranking of the Top 10 U.S. Airlines. Additional information on Hawaiian Airlines, including previously issued company news releases, is available on the airline's Web site at www.HawaiianAirlines.com .
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Hawaiian Holdings
Hawaiian Holdings, Inc. (NASDAQ: HA) is the parent company of Hawaiian Airlines, Inc.
Previously listed on the American Stock Exchange, the company moved to NASDAQ on June 2, 2008. Hawaiian Holdings, Inc. is a holding company whose primary asset is the sole ownership of all issued and outstanding shares of common stock of Hawaiian Airlines, Inc. On June 30, 2008, the company announced that it had been added to the Russell 3000 Index.
ʻOhana by Hawaiian
ʻOhana by Hawaiian is a regional subsidiary carrier of Hawaiian Airlines. The service is operated using three ATR 42 turboprop airplanes owned by Hawaiian and operated under contract by Empire Airlines. The new service was slated to begin in Summer 2013 initially flying to Molokai and Lanai, however the airline was unable to begin during that period due to Federal Aviation Administration delays in certifying ʻOhana's operation. ʻOhana by Hawaiian is fully integrated into the Hawaiian Airlines network, offering seamless connectivity throughout the islands and onto North America and Asia-Pacific regions. In February 2014, Hawaiian announced that ʻOhana would begin service on March 11. On June 12, 2014, ʻOhana by Hawaiian announced it will be expanding its route network to Maui offering daily flights between Kahului, Maui and Moloka'i; Kahului and Kona, Hawai'i Island; and Kahului and Hilo.