Hawaiian Air bankruptcy success fees.

[DE727UPS]

http://starbulletin.com/2005/03/30/business/story2.html

"Separately, it was revealed in court yesterday that Hawaiian has earmarked up to $10 million to pay for success fees to those who have steered it through bankruptcy."

and

"Thomas N. Ciantra, an attorney for the pilots union, raised that point yesterday during cross-examination of Hawaiian Airlines Trustee Joshua Gotbaum. If the airline is profitable enough to pay up to $7 million in performance bonuses for top managers and up to $10 million to pay success fees when it emerges from bankruptcy, then it can offer pilots more, Ciantra said."

I've never heard that one before...bankruptcy success fees. What will management think of next....

Could you do anything dumber to tick off your pilots just when you are trying to get them to vote yes on a concessionary contract to exit bankruptcy.

Reminds me of the Delta bonus debacle from a while back.

[Screaming_Emu]

while I agree that if someone new comes into the airline and turns it around 180 degrees (Bethune style) that they deserve some sort of compensation, but it sounds like they already had decided to do this before they could even see the light at the end of the tunnel, and while they might be out of bankruptcy (or close) that doesn't mean you can start giving money away.

[tonyw]

I also read something that said that UAL's lawyers fees for bankruptcy are somewhere in the hundreds of millions.

Obviously, you gotta pay the lawyers -- ain't that always the case? -- but the idea of a company that had to enter bankruptcy being saddled with hundreds of millions in fees just makes me shake my head.

[flyover]

Welcome to my world. I hate lawyers.

[I_Money]

These ecentive packs have been around forever - everytime management does something that is not negative, they get money!

[kellwolf]

I agree that management that turns a bankrupt carrier into a solvent (or at least feasible) carrier deserves a little extra, I think it's asinine to set aside cash that could be used for operations to reward someone that hasn't even come into the company yet, much less turned it around. I'm hoping it's A) an April Fool's joke or B) a ploy to get talented management to sign up.