New Hawaiian Air trustee resigns

After less than a month on the job, John Monahan today resigned from his post as Chapter 11 trustee for Hawaiian Airlines. “I have enjoyed my brief association with the people of Hawaiian Airlines and will miss the opportunity to be a part of what I’m confident will be a successful reorganization of the airline,” he said in a company statement, which cited “personal reasons that require his full attention” as the reason for his departure.

Monahan was appointed to oversee the airline’s operations in its bankruptcy case on May 30. He had previously helped guide local retailer Liberty House through its Chapter 11 case as its chief executive officer, but left the company after it was acquired by Macy’s.

The airline was forced to seek a trustee after a federal bankruptcy judge — prompted by a March 31 motion filed by Boeing Capital Corp., one of its primary debtors — questioned business decisions by then-CEO John Adams and his managers.

While Hawaiian Airlines initially criticized the decision, the company announced on May 27 that it would comply.

Three days later, Monahan was named to the post. At the time, the Star-Bulletin reported that Monahan was picked from a field of 20 candidates, many with background in the airline industry.

Hawaiian Airlines said Monahan was one of three candidates specifically put forward by Boeing.

According to today’s announcement, Monahan has told the airline that the office of the U.S. Trustee is already in the process of selecting a replacement, and that he will be available to work with the new trustee to facilitate a smooth transition.

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