Airline tells pilots to pay back Christmas bonus
Pilots at Hawaiian carrier Island Air who received a Christmas bonus of $4,000 have been ordered to pay it back.
The airline, which is owned by billionaire Larry Ellison, said the bonus was paid prematurely in October to around 45 pilots.
The error comes from an agreement to pay the bonus 30 days before the arrival of new planes but new CEO Dave Pflieger ordered a fleet review which is currently being undertaken by outside consultants, according to an internal email obtained by Honolulu Star-Advertiser newspaper.
The communication said once the review is complete, the airline could take delivery of new planes in early summer and then the bonuses would be repaid.
Pilots who put their bonus into retirement plans will have those returned.
All other pilots will have the money deducted from paychecks over the next four months.
Ed Davidson, chief operating officer, said an agreed 5% pay rise would also be delayed due to ongoing fleet review.
"What’s the point of taking back the bonuses, if they’re truly going to be repaid?" the pilots’ union said in a letter to employees.
"The bookkeeping and tax complications, plus the waste of staff time, simply do not justify recovery of monies today just to repay in a short period," the union added.
Pilots have voiced concerns that delays in expanding its fleet size could result in furloughs.
The carrier currently operates just five aircraft.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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