FINANCIALLY TROUBLED carrier Hawaiian Airlines has secured a last-minute, but still tentative, agreement with American Airlines to restructure long-term lease agreements for its fleet of ex-American McDonnell Douglas DC-10s.
The carrier has until 8 December to put together a set of renegotiated financial agreements with its creditors before a life-saving letter of intent (LoI) with a private-investor group runs out. The LoI covers provision for an infusion of $20 million of equity capital into the Pacific-island carrier.
Hawaiian's original deal with American was struck as part of its 1994 emergence from Chapter 11 bankruptcy protection. It expected to save up to $13 million a year in operating expenses by trading-in its Lockheed L-1011 fleet for the ex-American fleet of seven DC-10s. The expense of the transition and other aspects of the re-organisation meant that money was still being lost in 1994 and early 1995.
Source: Flight International
