October 2022 Hōʻike

A New Venture with Amazon

Hawaiian Airlines this month announced a major new initiative with Amazon. The online retailing giant has contracted with our company to fly A330s outfitted for freight to help deliver packages from their Cincinnati distribution hub to locations around the country.

The deal will expand our fleet by 10 aircraft over the next two years, supported by more than 200 new teammates – Pilots, Mechanics, Supply Chain Employees and Dispatchers – as well as a Mainland pilot base and larger Mainland maintenance footprint.

The structure of the eight-year deal:

■ We will fly and maintain 10 A330s for Amazon: Two aircraft will arrive in the second half of 2023, the balance in 2024.

Based on Amazon’s future business needs, the fleet can expand even further — by an additional 12 aircraft annually up to 55 aircraft total

■ Amazon is leasing the aircraft to us and will supply fuel and provide heavy maintenance

■ Amazon receives warrants in our company that can be exercised into stock, but any ownership position it takes would be a minority position

■ A small team in Technical Operations led by SVP Jim Landers will coordinate the work, both liaising with Amazon and integrating as needed with our existing operation

“We are a good fit for this work: Our expertise in operating the A330, our track record of consistent reliability, and our smaller size compared with other airlines are qualities Amazon seeks –we are agile, efficient and skilled,” said President & CEO Peter Ingram in his message to employees announcing the deal.

This significant new line of business and revenue stream comes at an important time as we continue to grow out of the pandemic amid strong competitive and economic pressures. While it strengthens the company, passenger service remains our core business. Major investments to enhance our service are under way – from a new Amadeus passenger service system to In-Flight Wi-Fi via Starlink to iPhone 13s for our Flight Attendants.

President & CEO Peter Ingram shares his perspective on the deal — “Many years ago, we embarked on international flying to diversify our passenger and cargo revenue. That was also a bold move — and a good choice. We’re taking this next step with Amazon for the same reason.”

“Hawai‘i is our home, and our purpose is to connect people with aloha. While we will also be connecting millions of people with their Amazon orders, who we are isn’t changing,” Peter said. ■

COVER: Managing Director Thomas Zheng and Senior Vice President Jim Landers will coordinate this important new line of business from Technical Operations.

The A330-300s that we will operate for Amazon are being retrofitted for freight operations. They will have a maximum container volume of 18,581 cubic feet and maximum takeoff weight of 212-233 metric tons.

COMMON QUESTIONS View a full list of FAQs on HApeople.

Why is Hawaiian entering into this deal with Amazon? Flying freight for Amazon is a smart expansion that leverages our core capabilities around operating A330s. It diversifies our business to strengthen our recovery and the company’s long-term health.

What changes are going to be required to move from passenger flying to operating dedicated freighters? We are not pivoting from passenger flying — our core business of commercial passenger service based in Hawai‘i will not change. To help operate this new arm of our business, we will open a new crew base on the Mainland and hire more than 200 pilots, mechanics, supply chain employees and dispatchers, and provide the relevant training for freight operations.

Where will we be flying and where will the operation be based? We will fly from Amazon’s main distribution hub and other major distribution centers to spoke airports and, likely, Hawai‘‘i locations. Where and when and what will be governed by Amazon.

Is this subject to any governmental or regulatory approvals? We will operate the aircraft under our existing FAA certification with modifications and additions to our Operations Specifications.

Q&A: Getting the Deal Done & What’s Next

THE SCOPE of our Amazon initiative required input from experts across the company and, of course, the heavy involvement of the C-suite. But two people were particularly instrumental in getting this complex deal to the finish line: Tom Zheng, who will coordinate the initiative going forward, and Joanne Lee, who worked closely with all parties to complete the contract. Now that the initiative has been announced, with the first two of 10 A330s to begin service in the second half of 2023, we interviewed Tom and Joanne to get their perspectives on the deal and what to expect.

We have about a year to pull this operation together. What are some of the closer-in actions to be taken?

TZ: There is so much to do to launch this new line of business. It will require many pulling in unison to be successful — it is easier to name departments that won’t be affected than those that will be. Closer-in, we are assembling a cross-functional team to do all the preparation required to launch, sustain and grow the business. We are having integration discussions with Amazon already. There will be new business processes and technology enablement. We have also initiated the process for FAA certification. JL: From the corporate office perspective, we will be focused on implementing new systems and processes to facilitate reporting and coordination with our customer and putting into place all the ancillary contracts that will be needed to support the operation.

Tom, you mentioned hiring, which has been a challenge this year. How will we accomplish this growth?

We will attract a lot of good candidates because of widebody flying opportunities and Mainland-based maintenance and flight operations. The agreement is designed to scale manageably – two aircraft inducted next year, the balance in 2024.

Some employees may be wondering…why Hawaiian Airlines? How would you answer that?

How long have you been with Hawaiian Airlines and what’s your career background?

TZ: I started in 2009, first in the Project Management Office, followed by a couple of years with Strategy & Transformation, now at Tech Ops for the last seven years. I started my career as a systems engineer at AT&T Bell Labs fresh out of graduate school with a degree in electrical engineering. Further education in business and years in management consulting broadened my experience until my wife and I decided that we wanted to call Hawai‘i home. It’s where we wanted to raise our two boys. JL: I joined Hawaiian almost four years ago. My career originated in e-commerce operations and project management, and I worked at start-ups in San Francisco and Hong Kong and a marketing agency in New York City before heading to law school, where (to my surprise) I got interested in tax law. I then practiced for several years at a firm in New York City, until relocating to Honolulu and joining a firm here, where I had a broader corporate practice that included corporate governance, mergers and acquisitions and commercial transactions.

What’s the most exciting thing about this initiative, from your perspective?

TZ: It’s a very different line of business for Hawaiian Airlines, but one that draws upon our well-established skills and knowledge in maintaining and flying A330s. JL: As we rebuild, this is an opportunity to further strengthen our company through both revenue diversification and growth.

TZ: As a leader in e-commerce, Amazon needs to reliably deliver its goods to its customers. On-time performance for each A330 freighter flight will affect Amazon’s ability to keep its promises to approximately 28,000 customers. In addition to our expertise in maintaining and flying A330s, our operational performance is a quality that Amazon seeks. JL: Agreed. Reliability is a critical factor for our customer, and we’ve had many years of demonstrated on-time performance. Relative to other carriers, the size of our company is also a benefit – it’s easier to be responsive.

Anything more you’d like to share about this major initiative?

TZ: You may hear the phrase “ATSA” often in the future. It stands for Air Transport Service Agreement between us and Amazon. The core team for the ATSA negotiation also included Keith Schuricht of Finance and Michael Blodgett of Tech Ops. We were supported by the entire senior leadership team, and many subject matter experts from across the company. The lōkahi made it possible to get this far, and we will need that to be successful in launching and running this new line of business. The fun is really just beginning. JL: This project has required a tremendous amount of collaboration across work groups (and will continue to do so). Working with this team has only increased my appreciation for how lucky I am to work with such committed and talented individuals here at Hawaiian. Now that we are able to share this good news throughout the company, I’m looking forward to everyone learning more about this exciting development and working with the broader team. ■

Tom Zheng is Managing Director, Technical Operations Business Planning & Initiatives. Joanne Lee is Managing Director and Deputy General Counsel in our Law Department.

Awards

While assisting a teammate with his leave paperwork following a medical incident, Naz learned that he was concerned about his ability to pay looming medical bills related to his recent hospitalization and was even afraid to see a physician due to cost.

After asking whether he’d agree to bring in his medical bills, she called the hospital and ambulance provider and discovered that vital insurance information was missing. Naz was not only able to correct this mistake and lower the employee’s bills, but also extended the due date of the invoices and connected him with a physician to ensure ongoing care. Naz connected him with a senior community to build his social activities and took it upon herself to check on his wellbeing.

“Naz noticed someone struggling and didn’t hesitate to provide assistance,” recalls her nominator, Senior Director of Leave Management Willard Jackson. “She truly embodies all of our values and cares so deeply about our Hawaiian Airlines ‘ohana.”

Crew Resource Management (CRM) is defined as effective use of all available resources for flight crew to assure a safe and efficient operation and Rod is often brought up as a skilled CRM practitioner. His nominator notes that despite his responsibilities as aircraft commander, he sees himself as an equal partner, treating crewmates and guests with care and respect. This lōkahi earned him a spotlight in our video highlighting this value.

“I can go on and on about Rodney,” said Flight Attendant Damon Fojas. “If you ask any Flight Attendant who has ever flown with him, they would say he’s top notch and one in a million. ■

“I appreciated her encouraging and positive approach despite various challenges that we faced.” ■

RODNEY CHUN / Anyone who spends time volunteering with Team Kōkua knows Capt. Rodney “Rod” Chun’s generous and collegial nature, but he also extends it to “the office.”

NANCY LEWIS / When they arrive at the airport, our guests can always expect a warm welcome from our frontline teammates. On the rare occasion that a mechanical problem causes a significant schedule disruption, that ho‘okipa is even more important to putting our guests at ease. Phoenix Guest Service Agent Nancy Lewis stood out during one such extended delay that resulted in guests having to disembark the aircraft and wait for updates in the departure lounge. While many guests were understanding, some weren’t as patient and expressed their frustration to agents at the service podium. Nancy, however, remained unflappable, maintaining her composure and pleasant demeanor while providing information she had at hand.

to help us do our jobs safely and do them well,” pointed out nominator Lead Contract Serviceman Kacy Lavaka.

The term “Kūpono” is used to describe someone who stands tall and represents what is right or pono. The Hawaiian Airlines Kūpono Awards Program recognizes individuals who are committed to our company purpose and embody our values on a daily basis. They show Mālama, Ho‘okipa, Lōkahi, and Po‘okela through how they act, lead, and make decisions. They help connect people with aloha by going above and beyond while excelling in their role at Hawaiian.

PSS: Working Together Toward Success

From the moment we embarked on our quest to transition our passenger service system

a combination of Mainline and Contract Services personnel who have proven to be valuable and effective. Everyone works very well together.”

This specialized team will use their operational and Amadeus experience to help us enhance the way we process our flights and serve our guests. They will also help frontline teammates learn Amadeus by the time we switch to the new system.

To gauge our frontline teammates’ familiarity and comfort level with the impending change, AO teamed up with Organizational Change Management colleagues to fan out across our Hawai‘i stations for a series of focus groups. They spoke to 35 line employees about their expectations for training in the new year and what we could do to help them prepare.

“Our station colleagues appreciated the opportunity to meet face-to-face to discuss their concerns,” recalls Director of Airport Operations Communications & Analytics Mark Zender. “We received great feedback, including a desire to get a

Desk – answering questions in-person at our stations for the rest of the year.

“As we prepare for end-user training, we will continue to communicate with our frontline colleagues,” said Senior Director of Airport Operations Policies & Procedures Sarah Slay. “We remain committed to working together to support all our teams during this transition.” ■

THE ANNUAL ALOHA FESTIVALS was founded in 1946, making it one of the oldest events of its kind in the United States. As a proud sponsor, we showcased our Aloha ‘Aina themed float at this year’s parade that focused on the mauka-to-makai ahupua‘a system. Using only organic materials, more than 100 employees, friends, and families contributed nearly 700 hours into creating the float.

“It’s always exciting to have our float go down the parade route,” said Director of Community & Cultural Relations Debbie NakaneluaRichards. “This event is a really great description of how we are as Island people. Whether you were born and raised here or chose to make Hawai‘i your home, it is the way we look at the place, each other, and how we interact.” ■

Celebrating Girls in Aviation

OUR WĀHINE IN AVIATION Employee Resource Group teamed up with the Honolulu chapter of Women in Aviation International to host 40 middle- and highschool girls at our Corporate Headquarters. The young women learned about aviation careers and visited our flight simulators. They also took advantage of one-on-one mentoring and witnessed engineering demonstrations and flight attendant exercises.

“We want to show our ho‘okipa (hospitality) and ensure that everyone – including the next generation – feels they have equal access to opportunities in the aviation industry,” shared event coorganizer Celinda LoBosco, manager of material planning and WIA ERG member at Hawaiian Airlines. ■

Hakalau

I loko o ka mahina ‘o ‘Okakopa nō, he ‘a‘a holoholo ko kākou ma ka Hui Mokulele ‘o Hawaiian a he kumuhana nui ka Moku O Keawe iā kākou! Eia i lalo he wahi mo‘olelo mai loko mai o ka nūpepa ‘ōlelo Hawai‘i e pili ana i kekahi ‘ano huaka‘i ‘ana ma ka Moku o Keawe mai ka nūpepa Ko Hawaii Pae Aina ma ka la 27 o Nowemapa i ka makahiki 1880. E nanea mai. Throughout October, the Hawaiian Airlines’ Holoholo Challenge is featuring Hawai‘i Island. Below is an excerpt from the Nov. 27, 1880, edition of the Hawaiian Language Newspaper, Ko Hawaii Pae Aina, sharing a story of one man’s holoholo around Hawai‘i Island via ship.

Ka Huaka‘i ‘Aukai, Ke Kaheāwai o ka Pele! An Ocean Journey: The Lava Is Flowing!

I ka hebedoma aku nei i hala, ua holo māka‘ika‘i aku mākou ma ka moana, me ka mana‘o e ka‘apnui iā Hawai‘i, a e kīlohi aku i nā kiaao ahi a Pele ma kona mau kuamo‘o e iho ana i ka ‘ai ‘āina i kai o Hilo a me Ka‘ū. Last week, we went for an ocean voyage with the goal of seeing Hawai‘i Island, and seeing the smoke of the volcano as the lava flowed to the ocean off Hilo and Ka‘ū.

I kā Likelike i kā‘alo aku ai ma ‘ō o Pu‘uōla‘i i ke kakahiaka Pō‘akolu, Novemaba 17, aia ho‘i, ua uhi pa‘a ‘ia ka ‘āina nui o Hawai‘i e ka uwahi Pele, a ua hiki ‘ole ke ‘ike aku i nā makalae, akā ua alaka‘i ‘ia ko mākou ihu e ka mekeneti o ke pānānā holomoku. As the ship Likelike passed Pu‘uōla‘i on the morning of Wednesday, Nov. 17, the land was obscured by the smoke of the volcano, but the prow of our ship was guided by the magnets of the nautical compass.

I ka hora 2 a ma hope iho o ka ‘auinalā, ua kū mua akula mākou ma ke awa o Mahukona, a mai laila aku, ua holo ka moku no Kawaihae, kahi o mākou i hiki aku ai i loko o ka hora a ‘oi. Ma hope o ka pau ‘ana o nā ‘ōhua a me nā ‘ukana o Kawaihae a me Hāmākua, i ka ho‘olele ‘ia, kau akula ko mākou ihu no ke ka‘apuni ‘ana i ka moku o Keawe. Ua hala hope iā mākou nā makalae o nā kapakai o Kohala ma mua o ka nāpo‘o ‘ana o ka lā. Ua mālie ka moana ma kēia huaka‘i a ka Likelike, a ua ho‘olakala ‘ia nā ‘ale kūwahawaha o ‘Alenuihāhā. At 2 p.m., we stopped at Mahukona, and from there went on to Kawaihae, arriving in about an hour. After offloading some passengers and cargo from Kawaihae and Hāmākua, we set off to go around the island. The lands of Kohala passed us as the sun set. The sea was calm, and the boisterous billows of ‘Alenuihāhā Channel subsided.

No ka uhi ‘ia o ka ‘āina e ka uwahi a me nā kilihune paka ua ma ka pō Pō‘akolu, ua hiki ‘ole i nā maka o ka po‘e e ake aku ana e ‘ike i nā kīnohinohi a ka Pele ke ‘ike aku i kona mau hi‘ohi‘ona, ‘oiai ka moku e kā‘alo a‘e ana ma waho o nā kapakai pali o Hāmākua. Because of the smoke and light rain, we were unable to see the design of the lava flows as the ship passed the peaks of Hāmākua.

Hora 11 o ke aumoe, hēkau ihola mākou ma waho o ke awa ‘ale‘ale o Laupāhoehoe. A ma hope o ka ho‘olei ‘ana i nā ‘ukana a me nā ‘ōhua, a naue loa akula mākou no Hilo, ke awa a mākou i kū aku ai i ka hora 4 a me hapa. I ka hō‘ea ‘ana aku, e pa‘a ana nō ‘o Hilo i kona kāhiko. A ma mua o ka wehewehe ‘ana o kaiao, ua pau akula nā ‘ōhua i ka lele no ka ‘āina. At 11 p.m., we dropped anchor at the lapping harbor of Laupāhoehoe. After disembarking some cargo and passengers, off we went to Hilo where we landed at around 4:30 a.m. Upon arrival, Hilo was bedecked in its usual splendor and upon sunrise, passengers ventured on to land.

Ua ho‘ohala aku mākou i ka manawa mai ka wehe ‘ana o ke alaula a hiki i ka hora 1 a me hapa ma ia kaona. A ma mua o ke kani ‘ana o ka hora 2 o ka ‘auinalā, ua pau hou mākou i luna o ka moku no ke ka‘apuni a‘e iā Puna, Ka‘ū a me nā Kona. Ia pō ‘ana iho, ua ‘ike maopopo ‘ia aku ke ahi o ka muliwai pele e kahe ana i Ka‘ū, a ma nā lono i hō‘ike ‘ia mai iā mākou ma Punalu‘u, ua komo a‘e ka pele ma ka palena ‘ākau loa o Ka‘ū ma Keamaku, ‘o ia paha he ‘eono mile ma ka hema aku o ka luapele ‘o Kīlauea. We spent time there until about 1:30 p.m. Then, before 2 p.m., we all returned to the ship which would pass Puna, Ka‘ū, and Kona. That night, we saw the lava flow at Ka‘ū and we heard in Punalu‘u that the lava went to the northernmost part of Ka‘ū at Keamaku, about six miles south of Kīlauea crater. ■

monthly by the Internal Communications team. latest information at HApeople.com

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