Hawaiian Airlines Offers Pilots Permanent and Extended Leaves Amid Travel Ban Extension.

Hawaii announced the extension of its tourism ban into September.  In an effort to avoid fall furloughs, Hawaiian Airlines, which depends on tourism, has reached an agreement with staff on a permanent and extended leave program.

The MEC has officially ratified LOA 20-08, creating both a Permanent Enhanced Surfer Leave (PESL) and an Extended Enhanced Surfer Leave (EESL). The text of the LOA and a streamlined chart comparing both Leaves are attached to this email. We encourage pilots to read both.

The PESL will offer pilots over the age of 60 an early retirement option with 58 hours of pay per month. Pilots age 60 or 61 at the end of 2020 will be given a PESL option that will provide 24 months of paid leave, followed by retirement. Pilots age 62 and older will be offered a PESL that extends until age 65.

The EESL will provide pilots a medium-term leave option with 50 hours of pay per month. The EESL will be offered in durations of 6, 12, 18, and 24 months. Once awarded, these Leaves may be shortened with 45 days notice. These Leaves will be allocated by Category at the Company’s discretion.

Pilots on both types of Leave are treated as active employees by the Company for the duration of the Leave, with several notable exceptions detailed below.

Throughout this unprecedented pandemic, the MEC has focused on providing pilots as many options as possible to help them address their personal situations. As with all LOAs, the MEC negotiated to obtain the best agreement they could to benefit the pilot group and to identify provisions that were mutually amenable to the pilot group and the Company. In this case, the MEC sees both Leave options as excellent tools for both the pilots and the Company to deal with the present overstaffing. This gives pilots the opportunity to take any Leave that's appropriate for their situation, and gives the Company the flexibility to recover as efficiently as possible.

As the Company navigates the next several years, they emphasized in negotiations how important it was that they be able to ramp up staffing as needed to meet the fluctuating demand environment. Their priority on operational flexibility at the expense of some pilot cost allowed us to negotiate the EESL. The EESL provides the dual benefit to the pilots of providing a generous leave option as well as facilitating the regrowth of our carrier, allowing it to be agile in matching capacity as fast as demand will allow.

The Company was not keen to provide early retirement options for pilots more than two years away from retirement, given the inherent uncertainty in predicting market conditions two years from now, which was why different durations had to be negotiated for pilots above and below 62 years old. The Negotiating Committee fought hard for the inclusion of those options.

Importantly, though, the Company’s reluctance to offer premature retirement beyond two years should also be taken as a positive sign for their overall view of the Company’s prospects moving forward. As with their stipulation for potential Early Return for pilots on EESLs, we take these as indications of a forward-looking need for pilots sooner rather than later.

The main takeaways from both plans are as follows:

Permanent Enhanced Surfer Leave (PESL)

• 58 hours of pay per month
• Available to all eligible pilots over age 60 on December 31, 2020
• Duration varies by age
• Pilots age over 60 but under 62 on December 31, 2020: 24 months
• Pilots age 62 or older on December 31, 2020: Until retirement age 65
• Leave begins the month following a finalized decision by the pilot
• Pay rate is fixed, based on the pilot’s pay rate on July 1, 2020
• Pay is treated as compensation in all ways except for Company 401(k) contributions
• Vacation and sick leave do not accrue, and the remaining Vacation hours will be paid out on 9/7/21 or the pilot’s retirement, whichever occurs first
• Flight bank may not be debited, and will be paid out on 9/7/21 or the pilot’s retirement, whichever occurs first
• Pilot is treated as an active employee until the end of the PESL
  -Medical and Dental Insurance coverage continue until age 65, including for pilots who take a 24-month PESL
• Life Insurance coverage continues as an active employee for the duration of the Leave
• Flight travel benefits continue as an active employee, except for
• Jumpseat privileges

Extended Enhanced Surfer Leave (EESL)

• 50 hours of pay per month
• Offered at the Company’s discretion by Category and duration
• Offered in 6-, 12-, 18-, and 24-month durations
• Leave begins at Company discretion
• Company option for voluntary (and, if needed, involuntary) Early
• Return with a 45-day notice
• Pay rate is based on the pilot’s activated Category at the time the
• EESL is offered, and increases with contractual raises and longevity increases
• Pay is treated as compensation in all ways, including Company 401(k) contributions
• Vacation and Sick Leave accrual continue as an active employee
• Flight Bank may not be debited
• Medical, Dental and Life Insurance coverage continue as an active employee
• Flight travel benefits continue as an active employee

This Agreement does not preclude furloughs, and any pilot taking an EESL will not be protected from furlough. It is, however, an excellent furlough mitigation tool for our pilot group as a whole, and we strongly encourage any pilot for whom it is a viable option to give it due consideration.

The beginning of the PESL election window is at the Company discretion, but we anticipate the process will begin very soon. This will begin a chain of bids, with a 45-day window for pilots to elect to take a PESL, a 14-day window for pilots to volunteer for an EESL, followed likely by a Vacancy (and possible Displacement) Bid. We will communicate any further information on the Company’s timeline once we know more.