Hawaiian — IPO Roadshow (May 2013)
36 slides from Hawaiian's IPO roadshow presentation, May 14, 2013
Slide 1: Investor Presentation May 2013
Investor Presentation May 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance, including but not limited to the Company’s operating and competitive environments, economi
Slide 3: Registration statement and prospectus notice
The issuer and guarantor have filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more com
Slide 4: EETC Transaction Summary
EETC Transaction Summary The Hawaiian Airlines Story Airbus A330-200 Collateral Summary
Slide 5: Hawaiian Airlines 2013-1 EETC Transaction Overview
Hawaiian Airlines 2013-1 EETC Transaction Overview • Hawaiian Airlines, Inc. is offering $444,540,000 of Pass Through Certificates, Series 2013-1 in two classes (“Certificates”): . Class A: $328,260,000 . Class B: $116,280,000 • The offering will finance six (6) new Airbus A330 aircraft scheduled fo
Slide 6: Summary of the Offering
Summary of the Offering 6 Class A Class B $328,260,000 $116,280,000 Ba1 / BBB+ / A- B1 / BB- / BB 52.8% 71.5% Fixed, semi-annual, 30/360 day count 9.0 years 6.9 years January 15 and July 15 January 15 and July 15 January 15, 2026 January 15, 2022 1.6 – 12.6 years 1.6 – 8.6 years July 15, 2027 July 1
Slide 7: Key EETC Structural Terms
Key EETC Structural Terms 7 . Classes Offered: Two tranches of amortizing debt are being offered, with a Class A and Class B each benefiting from a separate liquidity facility covering three semi-annual interest payments . Waterfall: Standard EETC waterfall, interest on the Preferred Pool Balance on
Slide 8: Aircraft Appraisals
Aircraft Appraisals • Hawaiian Airlines has obtained desktop appraisals from three appraisers: Aircraft Information Services, Inc. (AISI), Ascend FG Advisory (Ascend), BK Associates (BK)1 • Appraisals for the aircraft are calculated using Base Values • The initial aggregate aircraft Appraised Value
Slide 9: Aircraft Collateral Summary
Aircraft Collateral Summary Notes: 1. Appraised value is calculated using the lesser of the mean and median (“LMM”) values of each aircraft as appraised by AISI and Ascend as of April 2013, and BK as of February 2013. An appraisal is only an estimate of value and should not be relied upon as a measu
Slide 10: The Hawaiian Airlines Story
EETC Transaction Summary The Hawaiian Airlines Story Airbus A330-200 Collateral Summary
Slide 11: Leisure Is Our Business
Leisure Is Our Business Our brand, network and product are rooted in Hawaii Value is essential, but value doesn’t mean cheap Our home is special, and our guests’ experience on its airline should reflect that Our network needs to go where Hawaii’s visitors are, today and tomorrow 11
Slide 12: Product Optimized for Leisure A330-200
Product Optimized for Leisure A330-200 12
Slide 13: Core Elements of Our Diversified Network
Core Elements of Our Diversified Network Neighbor Islands (24% of 2012 Passenger Revenue) 24% North America (46% of 2012 Passenger Revenue) International (30% of 2012 Passenger Revenue) 46% 30% 1 Source: Airbus Global Market Forecast 2012. 2 Source: apgDat (Schedule). Market share based on 2012 ASMs
Slide 14: Hawaiian Airlines is Hawaii's Airline
Hawaiian Airlines is Hawaii’s Airline Leading Market Positions – All Our Flights Touch Hawaii West Coast: 11.4M Total Seats International: 4.9M Total Seats Neighbor Islands: 8.7M Total Seats HA #2: 26% Market Share HA #1: 23% Market Share HA #1: 88% Market Share Source: apgDat (Schedule). Market sha
Slide 15: Hawaiian Is a Global Carrier
Hawaiian Is a Global Carrier MANILA2 SEOUL TOKYO / HANEDA SYDNEY OSAKA / KANSAI FUKUOKA SAN FRANCISCO LOS ANGELES LAS VEGAS PAGO PAGO PAPEETE SEATTLE PORTLAND PHOENIX SAN DIEGO SACRAMENTO OAKLAND SAN JOSE NEW YORK / JFK BRISBANE Current Route Network (Including Announced Additions) SAPPORO / CHITOSE
Slide 16: Diversified Revenue Base & Profitable Growth
North America 70% Neighbor Island 23% International 7% North America 46% Neighbor Island 24% International 30% Cumulative EBITDAR Margin Consolidated ASM Growth 0% 10% 20% 30% (10%) 0% 10% 20% 30% 40% 50% 1 Source: Public Filings. Legacy airlines include Continental/United, Delta, Southwest/Airtran,
Slide 17: North America
North America (46% of 2012 Passenger Revenues) . Launched JFK flight service in June 2012 . North American Product Redesign . Leading Carrier West Coast to Hawaii* . Large seat share (26%) . Most West Coast gateways (10) . Outstanding brand recognition . Our North America Strategy: . Focus on larger
Slide 18: International
International (30% of 2012 Passenger Revenues) • Extrapolating a strong franchise with discipline . 2004: Sydney . 2008: Manila . 2010: Tokyo (Haneda) . 2011: Seoul (Incheon) . 2011: Osaka (Kansai) . 2012: Fukuoka (Apr) . 2012: Sapporo (Oct) . 2012: Brisbane (Nov) . 2013: Auckland (Mar) . 2013: Send
Slide 19: Neighbor Island
Neighbor Island (24% of 2012 Passenger Revenues) • Unmatched presence . Over 88% seat share . Unrivaled schedule . Strong competitive position (cost, product, service) . Adding ATR 42 turboprops in 2013 to further enhance neighbor island access Source: apgDat (Schedule) Starting Summer 2013 19
Slide 20: Many Growth Opportunities Remain
Many Growth Opportunities Remain Dallas Philadelphia Baltimore/ Washington Nagoya SYDNEY MANILA SEOUL TOKYO / HANEDA OSAKA SAN FRANCISCO LOS ANGELES FUKUOKA LAS VEGAS PAGO PAGO PAPEETE SEATTLE PORTLAND PHOENIX SAN DIEGO SACRAMENTO OAKLAND SAN JOSE MAUI NEW YORK / JFK POTENTIAL MARKETS BRISBANE SAPPO
Slide 21: Airbus A330-200 Collateral Summary
EETC Transaction Summary The Hawaiian Airlines Story Airbus A330-200 Collateral Summary
Slide 22: A330 Family Characteristics
A330 Family Characteristics1 22 1. Source: Airbus as of March 2013 2. Source: Airbus: A/C & Operators for which Airbus & Boeing have received the in-service data as of June 2012; Source: Airbus customer support, ASER Airline Service Experience The A330 is the most liquid widebody in its class Key Op
Slide 23: A330-200 Customers
A330-200 Customers 23 1. Source: Ascend Appraisal Report dated April 17, 2013 2. Source: Airbus as of April 2013 3. Note: Total in Operation does not add up to 100.0% due to rounding Top 10 Operators2 Key Characteristics2 Operator # of aircraft % 1. Air China 26 5.3% 2. Emirates Airlines 26 5.3% 3.
Slide 24: 2012 A330 Lease Transactions
2012 A330 Lease transactions 24 Remarketing/Placement: the A330 is a proven liquid asset 2 A330-200 1 A330-200 2 A330-300 1 A330-200 2 A330-300 1 A330-200 1 A330-200 1 A330-200 1 A330-200F* 1 A330-200 1 A330-300 1 A330-200 1 A330-200 3 A330-300* 1 A330-200 1 A330-200 1 A330-200 1 A330-200 1 A330-300
Slide 25: A330 versatility covering the world
A330 versatility covering the world 25 Source: Airbus
Slide 26: Importance of the A330-200 to Hawaiian Airlines
Importance of the A330-200 to Hawaiian Airlines Widebody aircraft have consistently formed an important part of our fleet • In 2008, we initiated our fleet renewal plan with an order for 6 A330-200 aircraft • In 2010 and 2011, we exercised purchase rights and amendments to bring the total size of ou
Slide 27: Appendix
Appendix
Slide 28: Broad Partnerships Without Alliance Membership
o Broad Partnerships Without Alliance Membership 28
Slide 29: Historical Financial Performance
Historical Financial Performance Source: Company filings. See page 35 for non-GAAP reconciliation. Note: 2008A results exclude positive impact of litigation settlement ($52.5mm). 2011A results exclude negative impact of lease terminations ($70.0mm). 2007A – 2012A results exclude unrealized (losses)
Slide 30: Historical Credit Metrics
Historical Credit Metrics Source: Company filings. See page 35 for non-GAAP reconciliation. Note: EBITDAR, EBITDARP and Funds From Operations adjusted for special items, economic fuel costs and tax benefits. 1 Includes capitalized rent expense at 7.0x and unfunded pension and OPEB balance, net of ta
Slide 31: Growing Stage Length Is Driving ASM Increases
Growing Stage Length Is Driving ASM Increases Our stage length has grown faster than passengers or departures as the A330 opens new markets for us • Looking at trend in ASM growth alone overstates our growth and relative risk Sources: Company filings and investor presentations. 31 ASMs, Seats and De
Slide 32: Historical Financials – Income Statement
Historical Financials – Income Statement Source: Hawaiian Holdings Form 10-K, 1Q 2013 Form 10-Q. ($ in thousands) FY 2010 FY 2011 FY 2012 3M 2012 3M 2013 OPERATING REVENUES: Total Passenger Revenues $1,154,972 $1,480,663 $1,767,041 $390,926 $439,939 Other 155,121 169,796 195,312 44,568 50,815 TOTAL
Slide 33: Historical Financials – Balance Sheet
Historical Financials – Balance Sheet ($ in thousands) 12/31/2011 12/31/2012 3/31/2013 ASSETS Cash and Cash Equivalents $304,115 $405,880 $438,221 Restricted Cash 30,930 5,000 5,000 Accounts Receivable, Net 94,164 80,750 99,950 Spare Parts and Supplies, Net 23,595 27,552 25,067 Deferred Tax Asset, N
Slide 34: Historical Financials – Cash Flow Statement
Historical Financials – Cash Flow Statement ($ in thousands) FY 2010 FY 2011 FY 2012 3M 2012 3M 2013 CASH FLOWS FROM OPERATING ACTIVITIES: NET CASH PROVIDED BY OPERATING ACTIVITIES $150,297 $178,764 $311,017 $119,464 $72,541 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to PP&E, Including pre-deli
Slide 35: Reconciliation – Non-GAAP Financials
Reconciliation – Non-GAAP Financials Source: Hawaiian Holdings 2007 - 2012 Forms 10-K. 1 Adjustment equal to gross amount for 2007 – 2009 due to a full tax valuation allowance in these years, net of tax for 2010 – 2012, based on a 40% effective tax rate. 2 Employer pension contributions are tax dedu
Slide 36: Mahalo!
Mahalo! Hawaiian Holdings Inc. / Hawaiian Airlines Inc. Transcript: Investor Presentation May 14, 2013 The following is a transcript of the oral comments of Thomas Bleimel of Citigroup Global Markets, Scott Topping, Chief Financial Officer, and Matt Baumgarth, Director of Fleet Acquisition, which co