Hawaiian Airlines earnings double
Nonrecurring items aid fourth-quarter profits

By Dave Segal
STAR-ADVERTISER

Hawaiian Airlines posts its 11th straight quarterly profit as nonrecurring items help earnings double to $70.6 million.
Hawaiian Airlines’ parent, which is targeting Asia for growth, doubled its earnings in the October-December quarter as increased seating capacity, nonrecurring tax adjustments and opportunistic fuel hedging helped the state’s largest carrier post its 11th straight profitable quarter.

In a quarter that featured profits by nearly all U.S. carriers, Hawaiian Holdings Inc. continued the trend with net income that surged 101.5 percent to $70.6 million, or $1.36 a share, from $35 million, or 66 cents a share, a year ago.

“These fourth-quarter results round out another good year for Hawaiian Airlines,” said President and CEO Mark Dunkerley of the carrier’s third straight profitable year. “In 2010 our strong financial performance enabled us to start service on two new international routes (to Japan and South Korea), take delivery of the first three of 16 new Airbus wide-body aircraft and replace our expiring credit facilities on favorable terms. At the start of 2011, we are well positioned to continue to grow into the rapidly developing travel market in Asia.”

Dunkerley said Hawaiian will add service to another yet-to-be-named city later this year. Chief Financial Officer Peter Ingram said last month that Hawaiian likely will announce another flight to Asia, most likely to Japan.

“These new services (to Tokyo and South Korea) are the beginning of what we anticipate will be a broader expansion of our business westward over the next several years,” he said. “Our focus on adding the service between Asia and Hawaii is simply explained: Asia is where the growth is. Our service to Tokyo positions us in Hawaii’s most significant international source of visitors and lays the foundation for further expansion in Japan.”

Hawaiian’s fourth-quarter earnings benefited from $56.9 million in nonrecurring tax benefits. Hawaiian had a similar benefit of $25 million in the fourth quarter of 2009. Hawaiian also benefited from $2.4 million in unrealized gains from fuel hedging or locking in oil prices before they rose higher. Hawaiian’s fuel-hedging benefit in the year-earlier quarter was $436,000.

Despite the hedging, aircraft fuel costs last quarter rose 27 percent to $89.7 million from $70.6 million in the year-earlier period and represented 29.7 percent of operating expenses.

Excluding the tax benefits and fuel hedging, Hawaiian’s net income increased 7.7 percent to $11.3 million, or 21 cents a share, versus $10.5 million, or 20 cents a share, from the year-ago period. Analysts were expecting 18 cents a share. Revenue jumped 15.7 percent to $343.8 million from $297 million as seating capacity increased 11.7 percent.

Hawaiian’s stock rose 24 cents yesterday, or 3.25 percent, to $7.63. The earnings were released after the market closed.

Analyst Bob McAdoo of Avondale Partners LLC said it was another solid quarter for Hawaiian.

“It’s a reflection on management that this is a company that continues to be profitable and make good money when they’re getting more and more competition from the mainland like from Alaska, Continental and other guys,” McAdoo said. “They’re making money not because Aloha and ATA disappeared (in the spring of 2008), but because they’re able to compete with the legacy carriers coming up from the mainland. … They’re making money because they’re running a good business.”

Nicklaus, Watson defend Skins title
Tandem collects $310,000 to edge O’Meara, Langer

By MATTHEW CARROLL
Article from: The Maui News

KAANAPALI – Practice makes perfect, even for Jack Nicklaus.

Fresh off a two-month stretch of what he called “awful” golf, Nicklaus fired a 6-iron from 137 yards to within 12 feet on the par-3 17th hole and Tom Watson converted the $250,000 birdie putt Sunday as the legendary duo pocketed $310,000 en route to becoming the first tandem to successfully defend its title at the Kaanapali Champions Skins Game.

The pair of Hall of Famers captured the opening two skins on Saturday at the Royal Kaanapali Course and waited patiently over the ensuing 14 holes before the Golden Bear picked the perfect time to pounce, nearly duplicating his best shot of the opening round and locking up the team’s third crown together with seven skins.

“Skins game is a funny game. After birdieing the second hole yesterday, we were hanging in there, we really didn’t do much,” said Nicklaus, owner of a record 18 major championships. “Today we were just sort of hanging around, not really competing. All of sudden, 17, boom! That’s what the game is.

“I’m glad I picked the right hole to make the right shot and I’m glad Tom took the right hole to make the right putt.”

First-round leaders Bernhard Langer and Mark O’Meara were left with $300,000 and seven skins, including the $100,000 “superskin” on the second playoff hole, after Langer’s 15-footer lipped out on the 17th. Fred Couples and Nick Price won two skins and $80,000, as did Ben Crenshaw and Fuzzy Zoeller.

“I’m disappointed that we didn’t win, but Jack hit an amazing shot off the 17th hole after I hit a pretty good one, and the hole was playing pretty tough,” O’Meara said. “He hit a world-class shot and Tom made a world-class putt.”

That’s a far cry from where Nicklaus deemed his game to be recently.

The 71-year old doesn’t hit the links that much anymore – “If I play 10 rounds of golf between now and the time I get back here next year I’ll be just absolutely amazed,” he said – but managed to sneak in a handful of holes during a two-month stretch in Florida prior to his arrival on the Valley Isle.

The greatest golfer of all time is one of few who can call three 78s, a 76 and a 72 “just terrible.”

“I even came out and practiced for the first time in five years,” Nicklaus said. “I hadn’t practiced in five years, where I actually went out to try and practice.

“I was on the verge of hitting the ball decently when I came out here, and actually I really started hitting the ball here.”

It showed Saturday, when he landed a 5-iron from 185 yards within three feet for two skins, and it was evident Sunday, too, never more so than on the final par 3.

“It may be surprising to some, it may be surprising to him, but it’s typical Jack in the way that he looks at his golf game,” said Watson, an eight-time major champion who also won with Nicklaus in 2007. “He looks at it very pragmatically, as I do. That’s why we like each other, ’cause we look at the game very pragmatically.

“He said, ‘When I first came here I was hitting it not very well. Then I found something that worked and then I found another thing that was working I added on top of that, and then I found a third thing that worked and added it on top of that and actually was playing pretty well.’ ”

During Nicklaus’ early-morning practice rounds, the picturesque shot over the fountain-dotted pond played as a 7- or 8-iron. Around 4:30 p.m. Sunday, however, a stiff wind forced him to alter his approach, and teeing off last allowed him to do so.

“I saw the guys try to hit 7-irons and they were hitting the ball, they were spinning it and they were going all over the place,” Nicklaus said. “So I said I’m going to take my 6-iron, choke it down a couple inches and just pick it, and try to make sure I didn’t put any spin on the ball. Which is what I did. It turned out to be a pretty darn good shot.

“Sometimes you have to go back and look in your memory bank and see if you can find something.”

Watson instantly recognized it was the best of the bunch.

“When the ball left his club, it was just boring right through the air, it wasn’t ballooning,” he said. “I knew it was going to be a heck of a shot.”

The stakes just added to the flair of the moment.

After Langer sank a seven-foot birdie worth $80,000 on No. 12, multiple players missed opportunities.

Price – who tapped in for birdie on the 10th for his team’s skins -missed a short birdie try on the 13th, curling the putt around the right side of the cup, and Couples missed a 10-footer for $100,000 on the 14th. After the 15th was halved, Couples again faltered with a big prize on the line, barely missing a downhill 15-footer for birdie on the 16th and carrying the pot over for a fourth straight hole.

“We needed a putt, but you know, today no one really made a putt,” Couples said. “We were in the same ballgame.”

As were Nicklaus and Watson, biding their time before seizing the day.

“Just lurking. We were just dodging bullets out there. We were dodging bullet after bullet after bullet,” Watson said. “We weren’t helping ourselves very much. When Jack hit that shot at 17, I knew it was time to convert.”

They landed in the rough more times than they care to remember, played out of a bunker or two and missed some key putts, yet always remained in the hunt.

Not quite the blueprint for success. But then again, with 26 major championships between the two, coming through in the clutch is nothing new.

“As I said to a lot of people yesterday, I said how would you like to step up on the first tee, and people say, ‘Well who’s your partner?’ ‘Well, my partner is Jack Nicklaus,’ ” Watson said emphatically. “How would you feel like having Jack Nicklaus as your partner?

“That’s the way I feel, always have.”

Couples probably wouldn’t mind the opportunity, either.

“Into the wind here, he hit a beautiful shot. That made the week, really, for me to watch that,” he said. “To see Jack hit that shot, the toughest shot of the day and he was the one who hit it, it was kind of fun to watch.”

Visitors from China arrive ready to spend
By Dan Nakaso
Article from: Star-Advertiser

The first chartered direct flight full of high-spending Chinese tourists touched down at Honolulu Airport yesterday with 263 passengers eager to shop and see the islands through the Chinese New Year over the next six days.

Chinese visitors are expected to spend an average of $368 per person per day this year, compared to just $275 per day for every Japanese tourist, said David Uchiyama, vice president of brand management for the Hawaii Tourism Authority, who welcomed the Chinese guests at a special airport reception that included hula dancers, live Hawaiian music, lei, soft drinks and plenty of picture-taking.

By comparison, spending for all Hawaii tourists averages just $178 per day, according to the HTA.

So yesterday’s arrival of high-spending Chinese visitors from a specially chartered flight is “significant,” Uchiyama said. “This is going to have a big impact on the state.”

Last year, Hawaii saw the arrival of 66,048 Chinese visitors, who each spent an average of $357 per day. This year the HTA expects to see 82,146 Chinese tourists, a 24 percent increase.

Li Xiu Ying, a retired teacher from Szechuan province, and her husband, factory manager Quing Shi Luo, deplaned from the chartered Airbus 340 yesterday full of smiles.

Their flight originated in Beijing, picked up more passengers in Shanghai Pudong International Airport east of Shanghai, and then took seven hours and 10 minutes to land in Hono-lulu — a time Li said through a translator was “very fast.”

When asked how she plans to spend six days in the islands, Li rattled off a response.

“Shopping,” the translator said. “She wants to go shopping.”

Li is particularly eager to buy high-end, designer goods in Honolulu that she can trust to be authentic.

“She’s happy to come to this place that everybody in the world wants to see,” said the translator.

Yesterday’s flight was the first of three chartered by China CYTS Tours and expected to arrive in the first four months of the year, according to the HTA.

It follows the 2007 signing of a U.S.-China memorandum of understanding that helped make it easier for Chinese visitors to obtain travel visas to come to Hawaii.

Ted Liu, former director of the state Department of Business, Economic Development and Tourism, flew in economy class aboard yesterday’s flight, which, he said, represented the culmination of 18 months of work by the administration of former Gov. Linda Lingle.

Liu estimated that one-fourth of the passengers have been to Hawaii before by flying through Narita, Japan, or through South Korea. The majority of yesterday’s passengers were families that included grandchildren and the elderly, Liu said.

“There was a lot of excitement on board, a lot of happy people,” Liu said. “People were very excited about Hawaii.”

However, there was no Hawaii literature onboard the Airbus 340 or any Hawaii-themed in-flight videos to get passengers excited about what they will see in the islands, which needs to be corrected, Liu said.

And once on the ground, some passengers spent 30 to 45 minutes filling out customs forms that could have easily been completed in advance in the air, Liu said.

But he was pleased that so many arriving Chinese passengers seemed eager to start their Hawaii vacations, which Liu expects will include plenty of shopping for luxury goods.

“They can get better value here, as well as the assurance that it’s authentic,” Liu said.

Many of the Chinese visitors planned to follow China CYTS Tours of major Oahu attractions while others designed individual itineraries.

The Hawaii Tourism Authority said the Chinese visitors will stay at the Hilton Hawaiian Village, Sheraton Waikiki, Sheraton Princess Kaiulani, Aston Hotels and Resorts, Ocean Resorts Waikiki and the Hyatt Regency.

“The series of Hawaii package products have been promoted in Beijing, Shanghai, Tianjin and Shanxi Province and are designed to meet the different demands of Chinese travelers,” Zhang Lijun, president of CYTS, said in a statement. “The tour package for this first group is specifically for individuals who wanted to travel during the Chinese New Year.”

Easter Seals to have home of own
Former ML&P site will house clients, expand services

January 30, 2011 – By MELISSA TANJI
Article from: The Maui News

KAHULUI – Easter Seals Hawaii hopes to soon begin a $7 million extensive renovation project to establish a community campus in Kahului where its programs can expand and its clients can easily interact with the community and have a place to live independently.

By this summer, the nonprofit expects to start work on a 1.7-acre parcel adjacent to the Queen Ka’ahumanu Center that used to house the Kamehameha Schools and Maui Land & Pineapple preschools as well as ML&P’s former offices and dormitories. Easter Seals hopes it can move into part of its renovated new digs in early 2012.

“It fits such a need for Maui. I feel like it’s a dream come true,” said Roxann Kehus, Maui County manager of Easter Seals Hawaii.

There are 777 known teens and young adults on Maui with developmental disabilities about to or ready to transition into society after leaving school, Kehus said.

With the new campus brings the possibility of having more vocational education and job skill training for those who have developmental disabilities and special needs. The campus will also have a housing component for Easter Seals adult clients.

“I think it’s great,” said John Maher, whose 36-year-old son, Sean, is an Easter Seals client. John Maher said his son already enjoys Easter Seals’ programs and activities, which include going to the beach and shopping.

“The thing we worry about, we’re not kids anymore, what will happen to (Sean) if something happens to us. To have him in an Easter Seals facility would be fantastic,” said Maher about the campus’ proposed living quarters.

Josette Barrett, whose 18-year-old daughter, Rachel, is a client of Easter Seals, is also happy about the program’s expansion to include more job training for those like her daughter, who want to get a job after leaving school.

Currently Easter Seals on Maui holds its programs at the Cameron Center in Wailuku. The organization assists children and adults with developmental disabilities and special needs, such as Down syndrome, autism, muscular dystrophy, cerebral palsy and sensory impairments.

But having their own facility would allow programs to grow and improve, Kehus said.

Currently Easter Seals on Maui has 60 clients from children to adults, and that number could easily double with the new facility, Kehus said. But she added that it’s not about the numbers but the quality of the programs, which she said would improve with the new facility.

In addition to using the old preschool buildings for a computer lab, game room and kitchen/training area, the grassy portions around the buildings can be used for gardens and play areas – outdoor options not easily achievable at the Cameron Center.

“We can’t just dig a hole where we want,” Kehus said.

Kehus said the new complex will allow Easter Seals to have more space and more programs to help people with disabilities learn how to get into the work force and integrate into the community.

That could also include creating jobs at the Easter Seals campus. She said the site could possibly include a laundry service or a car cleaning and washing service.

She added there is a “paradigm shift,” in which people are not just viewing those with disabilities as people who need to be cared for but as those who can work and contribute to the community.

“We have a chance to make a bold statement,” said Easter Seals Hawaii CEO and President John Howell, who is excited about the project and its possibilities.

He added that having its own site will also bring cost savings to the nonprofit.

Howell said that with the soft economy, the agency has seen many budget cuts to its programs.

“Its been brutal,” he said.

He said the organization will save around $100,000 a year when it moves to its own location, and that money can be put back into Easter Seals programs.

Although Howell said Easter Seals liked it at Cameron Center, the organization had to jump at the opportunity to have its own site.

The agency has already acquired the ML&P site and buildings for $1.8 million and has also received some additional funding toward renovations.

Howell said the organization needs to raise an additional $4 million to $6 million in order to complete the renovations.

“We are fairly comfortable the fundraising will be a success,” he said of the capital campaign.

He said Easter Seals has held three previous capital campaigns in 12 years and has “a successful track record.”

The organization is also seeking grants.

“We really do hope the Maui community will support us as well,” Howell said.

After all renovations are complete and the programs are in place, he estimates the total cost of the new center would total around $10 million.

The work will be done in phases, with the first renovating the three buildings formerly used by the preschools. The three buildings have covered walkways, and there is also a central courtyard.

The second phase will involve renovating the two-story, 10,000-square-foot metal building used as a dormitory and office. The first floor when complete will be used as activity space for programs like vocational training, and could also be used by other community groups interested in renting the space. The second floor will be converted to eight one-bedroom and studio residential units where independent adults with disabilities can live. An elevator will be added to the building to make it accessible.

Kehus and Howell said there is a shortage of independent housing for people with disabilities on Maui.

They both added that the housing’s proximity to the bus line at Queen Ka’ahumanu Center as well as shopping facilities and University of Hawaii Maui College makes it an ideal location for the organization’s clientele.

Kehus said the second phase will also add two more buildings to the complex. That would bring it to a total of 6,000 square feet of building space for the five structures.

Howell hopes work can begin on the second phase in 2012 and be finished in 2013.

According to Easter Seals, the organization currently has 80 staff members, but staffing is expected to climb to 125 employees with the new campus.

Click the link for an insightful Associated Press article.

http://hosted.ap.org/dynamic/stories/U/US_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-01-28-16-54-09