Aloha Don!
- Thread starter s80dude
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goingboeing
Veteran
- Jan 30, 2004
- 584
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3RD times is a charm.Don Carty has already wrecked 2 airlines and now he wants another! [Canadian Air & American Airlines] The more things change the more they stay the same.Why couldn't he become the CEO at one of major competetors such as Delta or Southwest?????????
Hawaiian is becoming an interesting story.....
Their CEO John Adams had to leave in connection with a 28 million dollar question of diverted funds.
Hawaiian Airlines filed for Chapter 11 bankruptcy last year. Creditors filed a no-trust motion against Adams and the airline is run by a court-appointed trustee.
"We continue to believe that Mr. Adams improperly diverted more than $28 million from Hawaiian and, if the court agrees, we hope to get those funds back," said trustee Josh Gotbaum.
Hawaiian Airlines Inc., doing better in bankruptcy than out of it, has posted its 10th straight monthly operating profit.
In January it made an operating profit of $6 million on revenue of $60.4 million.
The most successful airlines typically lose money in the winter months. But Hawaiian has been flying more than 80 percent full, the best load factor in the U.S. airline industry, Aviation Daily reported.
"This is one of the nation's best airlines," Trustee Joshua Gotbaum said.
John Adams, former chairman of Hawaiian Airlines, might be up against civil action for alleged securities law violations, the airline's parent company reported Friday in a federally required filing. While Adams was both chief executive officer of the airline and indirectly its controlling shareholder, he engineered a stock buyback worth tens of millions of dollars, essentially using up a federal payment to the airline that was meant to compensate it for war-related lost revenue. Then he took the airline into Chapter 11. Some creditors said the stock buyback money, which wound up in the pockets of Adams and other shareholders, should have been used to pay bills.
Stock buybacks not only put money directly into the hands of stockholders but raise the value of the stock that remains. Companies sometimes to do it to reward shareholders as an alternative to putting money into their pockets through the more conventional mechanism of dividends. Buybacks can also sometimes get some large shareholders to cash out, leaving others with firmer control of a company.
In the case of Hawaiian Airlines, Adams has said he had legal advice and was told that what he wanted to do was okay. Legal or no, it alienated creditors, who persuaded the bankruptcy judge to oust Adams as CEO in favor of a trustee. The court appointed John Monahan, who presided over the turnaround of Liberty House, and, when he resigned after three weeks, appointed Joshua Gotbaum, a former senior level executive from a federal agency. Gotbaum told Adams to take a number with the creditors and the two men have sniped at each other ever since.
The above info is from Pacific Business News.....
A former TWA executive Christine Deister, is now the CFO, Exec. VP, Treasurer of HA.
The addition of Don Carty shows the industry has an interesting family tree, not limited to just Hawaiian.
Mr Carty, while currently "out of favor" at AA, has some proving to do at HA, but I think he learned some valuable lessons and I always felt he had an ability to connect with people and could be an excellent choice if everyone minds their P's and Q's. I know I'll hear disagreement on that point, its just my humble opinion.
Still, it is ironic that a company with a CEO who may have improperly diverted funds, may end up with a leader of an investment group that was accused of some "diversions" of his own.
Their CEO John Adams had to leave in connection with a 28 million dollar question of diverted funds.
Hawaiian Airlines filed for Chapter 11 bankruptcy last year. Creditors filed a no-trust motion against Adams and the airline is run by a court-appointed trustee.
"We continue to believe that Mr. Adams improperly diverted more than $28 million from Hawaiian and, if the court agrees, we hope to get those funds back," said trustee Josh Gotbaum.
Hawaiian Airlines Inc., doing better in bankruptcy than out of it, has posted its 10th straight monthly operating profit.
In January it made an operating profit of $6 million on revenue of $60.4 million.
The most successful airlines typically lose money in the winter months. But Hawaiian has been flying more than 80 percent full, the best load factor in the U.S. airline industry, Aviation Daily reported.
"This is one of the nation's best airlines," Trustee Joshua Gotbaum said.
John Adams, former chairman of Hawaiian Airlines, might be up against civil action for alleged securities law violations, the airline's parent company reported Friday in a federally required filing. While Adams was both chief executive officer of the airline and indirectly its controlling shareholder, he engineered a stock buyback worth tens of millions of dollars, essentially using up a federal payment to the airline that was meant to compensate it for war-related lost revenue. Then he took the airline into Chapter 11. Some creditors said the stock buyback money, which wound up in the pockets of Adams and other shareholders, should have been used to pay bills.
Stock buybacks not only put money directly into the hands of stockholders but raise the value of the stock that remains. Companies sometimes to do it to reward shareholders as an alternative to putting money into their pockets through the more conventional mechanism of dividends. Buybacks can also sometimes get some large shareholders to cash out, leaving others with firmer control of a company.
In the case of Hawaiian Airlines, Adams has said he had legal advice and was told that what he wanted to do was okay. Legal or no, it alienated creditors, who persuaded the bankruptcy judge to oust Adams as CEO in favor of a trustee. The court appointed John Monahan, who presided over the turnaround of Liberty House, and, when he resigned after three weeks, appointed Joshua Gotbaum, a former senior level executive from a federal agency. Gotbaum told Adams to take a number with the creditors and the two men have sniped at each other ever since.
The above info is from Pacific Business News.....
A former TWA executive Christine Deister, is now the CFO, Exec. VP, Treasurer of HA.
The addition of Don Carty shows the industry has an interesting family tree, not limited to just Hawaiian.
Mr Carty, while currently "out of favor" at AA, has some proving to do at HA, but I think he learned some valuable lessons and I always felt he had an ability to connect with people and could be an excellent choice if everyone minds their P's and Q's. I know I'll hear disagreement on that point, its just my humble opinion.
Still, it is ironic that a company with a CEO who may have improperly diverted funds, may end up with a leader of an investment group that was accused of some "diversions" of his own.
LaBradford22
Advanced
- May 15, 2003
- 206
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Note that Carty is just going to be Chairman, not CEO. Key difference...
If this new position for Mr Carty comes through at Hawaiian,WingNaPrayer
Veteran
desertfox said:
MrMarky
Advanced
Let me guess.......Carty is going to do for Hawaiian what he did for American?? 
LGA Fleet Service
Veteran
Airline management is constantly being recycled,nothing new in that.jj said:
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