Hawaiian's Airbus Order Faces Delay, Cancellation
By Brian Straus, ATW Daily News | Jan. 21, 2008
Hawaiian Airlines' fleet overhaul is in jeopardy because of strained relations with its pilots, the carrier said on Jan. 18 in a filing with the US Securities and Exchange Commission.
Parent Hawaiian Holdings said its "proposed acquisition" of six firm A350XWBs and six firm A330-200s, based on a November MOU that also included six purchase rights for each type, "has been delayed and may not be consummated as a result of an impasse in negotiations with its pilots union, the Air Line Pilots Assn." Delivery of the first -200 was scheduled for 2012.
HA said that prior to execution of the US$4.4 billion agreements with Airbus and Rolls-Royce, it has negotiated with ALPA concerning "the terms and conditions under which the aircraft would enter its fleet." It said it may have to cancel the order "due to the risk caused by the uncertainty of operating terms and the financial impact that eventual operating terms may have on the economic merits of the fleet acquisition transactions."
Eric Sampson, chairman of ALPA's HA unit, told the Honolulu Star-Bulletin that the airline "negotiated this deal and think we should just be jumping up and down for joy ... The collective bargaining agreement doesn't let them do that. This has to be a negotiation." He told the paper that talks center on an adjustment to sick-leave accrual, improved rest facilities on long-haul flights and expedited contract negotiations. HA's long-haul fleet currently consists of 18 767-300s and -300ERs.