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AFA Opposes Hawaiian Airlines Bonus Plan

Date: July 8, 2004

Court Filing Seeks Rejection of Scheme to Divert Givebacks

WASHINGTON - The Association of Flight Attendants-CWA, AFL-CIO, wants a federal bankruptcy court to reject a scheme offered by the trustee of Hawaiian Airlines to give huge bonuses to its executives and managers, even though the carrier has extracted concessions from its employees.

"Flight attendants made substantial sacrifices in order to ensure the recovery of our airline," said Sharon Soper, president of the AFA Master Executive Council at Hawaiian. "Now the trustee wants the bankruptcy court to approve a plan that would reward managers who did not share in these sacrifices."

In March 2003, Hawaiian flight attendants agreed to a package of contract concessions worth $3.475 million per year in order to keep the carrier aloft—just slightly more than the amount now earmarked for management bonuses. Earlier this year, the company demanded more concessions although it had returned to profitability.

The AFA filing notes that the plan offered by Trustee Joshua Gotbaum, offered as a way to retain executives, in no way compels managers to remain at Hawaiian.

More than 46,000 flight attendants join together to form AFA, the world's largest flight attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO. Visit us at www.afanet.org.

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