Tentative Agreement Reached With Union

Hawaiian Airlines reported this week its February 2009 and overall year-to-date traffic numbers increased handsomely over similar periods in 2008, back when the carrier was fighting a three-front battle to win a share of the Hawaiian travel market.

According to figures released by the airline, passenger numbers for February increased 15.1 percent over the same period in 2008, and 13.8 percent overall for the year-to-date. The carrier posted slight gains in capacity, as well.

With former competitor Aloha Airlines out of the picture, Hawaiian must now compete only with Mesa Air Group's go! regional subsidiary on interisland routes... restoring the two-carrier equilibrium that dominated the Hawaiian market for ages, before go! entered the market in 2006.

However, that outcome hasn't helped Hawaiian where it counts most, in load factor. According to Hawaiian, the percentage of seating capacity utilized -- in other words, how many paying customers are filling seats -- dropped in February and YTD, the latter to the tune of 3.1 percent over 2008 numbers. If that trend continues, Hawaiian will need to look at parking some of its planes.

In related news, the International Association of Machinists and Aerospace Workers (IAM) District 141 announced Monday a tentative agreement with Hawaiian, covering the carrier's 1,500 customer service, reservation, ramp and clerical employees... the first such agreement since Hawaiian exited Chapter 11 protection in 2005.

The proposed two-year contract provides wage increases ranging from three to ten percent, freezes current employee healthcare contributions, provides an incentive compensation program and enables performance and profit bonuses. Additional contract adjustments recognize the challenges facing the industry.

"This tentative agreement puts more money into our members' pockets during extremely difficult economic times," said IAM District 141 President Rich Delaney. "Our negotiating committee unanimously recommends ratification of the agreement."

Membership must now vote on the agrement, with results expected after March 25.

FMI: www.hawaiianairlines.com, www.iam141.org