Joshua949
New Member
AMR Ex-Chief Carty Joins Bidding For Hawaiian Air
March 24, 2004
The former head of American Airlines, Don Carty, said on Wednesday he is looking to join an investment team seeking to purchase Hawaiian Airlines once the carrier emerges from bankruptcy.
Carty said he will join with John Adams, the chairman of Hawaiian's parent Hawaiian Holdings, and others as the potential majority owners. Carty would return to the airline business as the non-executive chairman of Hawaiian Airlines, under the group's preliminary proposal.
"While the company is sitting in bankruptcy, this is not a company that needs massive restructuring. Most of the restructuring of this company occurred before the bankruptcy," Carty said in an interview.
Carty, 57, was forced to resign as the chief executive and chairman of American Airlines parent AMR Corp about a year ago as employees fumed over revelations of executive perks that came out just as rank-and-file workers were voting on massive deals to cut their wages to keep the carrier out of bankruptcy.
There are competing bids for Hawaiian Air, including the one with Carty as the big-named backer, and another backed by Boeing Capital, the financing arm of airplane manufacturer Boeing -- one of the airline's largest creditors.
Carty would not give details on the numbers behind their bid but said the group will structure an investment vehicle that may be a limited partnership or limited liability. The plan would also call for current president Mark Dunkerley to step into the role of chief executive.
"That investment vehicle is likely to be the majority or the significant shareholder in Hawaiian," he said, adding, "for me, it is a significant investment."
The airline, Hawaii's largest carrier, filed for bankruptcy about a year ago. Carty would not be directly involved in the daily management of Hawaiian but he will offer guidance.
Carty said he sees good opportunities for incremental growth at Hawaiian that could include more partnerships on a domestic and international basis. He also saw strong prospects for the airline in the Asian markets of Japan, China and Taiwan.
He pointed out that the airline has restructured its labor contracts, modernized its fleet and steadily increased its market.
Last week, Hawaiian Holdings said that its chairman Adams and his investment company could face civil action for possible violations of securities laws related to the company's tender offer announced on May 31, 2002.
Hawaiian Holdings said the staff of the San Francisco District Office of the US Securities and Exchange Commission is considering recommending that the SEC authorize a civil action against Adams and an investment group affiliated with him.
On April 1, a bankruptcy judge in Hawaii will outline a process by which bidders can get a closer look at Hawaiian's numbers so they can prepare their final bids.
March 24, 2004
The former head of American Airlines, Don Carty, said on Wednesday he is looking to join an investment team seeking to purchase Hawaiian Airlines once the carrier emerges from bankruptcy.
Carty said he will join with John Adams, the chairman of Hawaiian's parent Hawaiian Holdings, and others as the potential majority owners. Carty would return to the airline business as the non-executive chairman of Hawaiian Airlines, under the group's preliminary proposal.
"While the company is sitting in bankruptcy, this is not a company that needs massive restructuring. Most of the restructuring of this company occurred before the bankruptcy," Carty said in an interview.
Carty, 57, was forced to resign as the chief executive and chairman of American Airlines parent AMR Corp about a year ago as employees fumed over revelations of executive perks that came out just as rank-and-file workers were voting on massive deals to cut their wages to keep the carrier out of bankruptcy.
There are competing bids for Hawaiian Air, including the one with Carty as the big-named backer, and another backed by Boeing Capital, the financing arm of airplane manufacturer Boeing -- one of the airline's largest creditors.
Carty would not give details on the numbers behind their bid but said the group will structure an investment vehicle that may be a limited partnership or limited liability. The plan would also call for current president Mark Dunkerley to step into the role of chief executive.
"That investment vehicle is likely to be the majority or the significant shareholder in Hawaiian," he said, adding, "for me, it is a significant investment."
The airline, Hawaii's largest carrier, filed for bankruptcy about a year ago. Carty would not be directly involved in the daily management of Hawaiian but he will offer guidance.
Carty said he sees good opportunities for incremental growth at Hawaiian that could include more partnerships on a domestic and international basis. He also saw strong prospects for the airline in the Asian markets of Japan, China and Taiwan.
He pointed out that the airline has restructured its labor contracts, modernized its fleet and steadily increased its market.
Last week, Hawaiian Holdings said that its chairman Adams and his investment company could face civil action for possible violations of securities laws related to the company's tender offer announced on May 31, 2002.
Hawaiian Holdings said the staff of the San Francisco District Office of the US Securities and Exchange Commission is considering recommending that the SEC authorize a civil action against Adams and an investment group affiliated with him.
On April 1, a bankruptcy judge in Hawaii will outline a process by which bidders can get a closer look at Hawaiian's numbers so they can prepare their final bids.