Refinances Existing Airplanes To Lower Costs

Hawaiian Airlines today announced that it has leased three additional Boeing 717-200 aircraft in response to increasing consumer demand. With these aircraft joining the fleet, Hawaiian will be able to expand its interisland service between Honolulu and Kahului, Lihue, Hilo, and Kona during peak travel periods, and further improve its industry-leading operational reliability.

Along with acquiring the three additional aircraft, Hawaiian announced that it has purchased its existing fleet of 15 leased Boeing 717-200 aircraft in a refinancing transaction that reduces its fleet costs over the long term.

"With our increasing service to Hawaii from Asia, demand for our interisland flights during peak hours of the day and during popular travel periods has never been higher. Adding these aircraft will give us the ability to serve more customers during these periods," said Mark Dunkerley, Hawaiian's president and chief executive officer. "At the same time, we are restructuring the ownership of our existing fleet to reduce our aircraft costs. With other costs rising quickly, this will help us keep fares affordable."

Hawaiian expects to take delivery of the three additional aircraft in September, October and November. Hawaiian has purchased the aircraft it previously operated under long term leases from Boeing Capital Corporation (BCC) with financing provided by BCC and entered into multi-year leases with BCC for the three additional 717s. Terms of the transactions were not released.

"The 717 has proven itself as an able partner to Hawaiian's interisland mission. Hawaiian's decision to expand its fleet and move from operator to owner is a further vote for the world's best 100-seat airliner by an experienced and valued customer," said Jordan Weltman, Boeing Capital vice president for the Americas region.

The Boeing 717-200 is the world's best 100-passenger jetliner designed specifically for short-haul, high frequency operations. The twinjet features an advanced cockpit and avionics comparable to a Boeing 777, as well as a "big airplane" passenger feel with wide, five-abreast seating and large overhead storage bins. It is the quietest 100-seat airplane now operating, and among the most reliable with a fleet-wide average 99.4 percent reliability.

FMI: www.HawaiianAirlines.com