Plunging oil prices will give airlines a $12 billion boost

Airlines around the world are poised for a $12 billion windfall as the global oil crash cuts bills for jet fuel, the biggest expense in an industry that was battered by surging commodity prices last decade.

The savings promise to produce fatter profits and, in the U.S., rewards for shareholders through sweetened dividends or stock buybacks. Missing out are consumers, because many carriers are still filling seats without having to resort to discounts. Unlike 2008 and 2009, when sagging travel demand dampened the boost from fuel sinking 51 percent from its peak, crude’s fall to a five-year low is providing a tailwind for airlines posting record earnings. Profits in 2015 will swell 25 percent to $25 billion, according to the International Air Transport Association, the trade group for the world’s major airlines.

Outrigger’s Kelley receives lifetime award

Dr. Richard Kelley, the 81-year-old chairman emeritus of Outrigger Enterprises Inc., was recognized Tuesday as the first Hawaii recipient of the Lifetime Achievement Award from Travel Weekly.

Kelley, who is the son of Outrigger founders Roy and Estelle Kelley, got his start in Hawaii tourism after his parents opened the Islander Hotel in 1947. Working at first in tandem with his father, then independently, Kelley began the transformation of the small family-operated business into an internationally recognized chain. The privately owned hospitality company currently owns and manages 45 properties. Altogether, it has 10,000 rooms and employ nearly 5,000 staff members in eight countries.

The award, first presented in 2003, honors members of the industry who have consistently demonstrated leadership and insight, profoundly changing for the better not only their own companies, but the industry as a whole and whose careers have provided a model of vision and accomplishment for tomorrow’s leaders.

The honor places Kelley in the company of travel and tourism greats like his friend Bill Marriott (Marriott International chairman), Gordon Bethune (former Continental Airlines chairman and CEO), Richard Anderson (Delta Air Lines CEO), Bob Dickinson (former Carnival Cruise Lines CEO), Richard Fain (Royal Caribbean Cruises chairman), Tim and Nina Zagat (co-founders and co-chairs of Zagat Survey) and Rossi Ralenkotter (Las Vegas Convention and Visitors Authority president and CEO).

Kahala sale closes; management retained

Japan-based Resorttrust Inc.’s $290 million acquisition of the Kahala Hotel & Resort closed on Oct. 14, paving the way for the company to begin a global expansion plan.

The Kahala is Resorttrust’s first overseas hotel and is operated by local subsidiary Resorttrust Hawaii LLC. The company, which operates 44 luxury resorts throughout Japan, plans to establish the Kahala as its flagship international property and linchpin to expansion across the Asia-Pacific.

To ensure a smooth transition, Resorttrust intends to maintain the Kahala’s existing management structure led by General Manager Carmine Iommazzo and to preserve the resort’s prestigious legacy.

"We are extremely proud to assume stewardship of one of the world’s most iconic resorts and look forward to building upon the success of the Kahala brand to create new value for our guests," said Katsuyasu Ito, president of Resorttrust. "We plan to leverage the expertise we have cultivated over 40-plus years of operating luxury resorts in Japan to deliver unparalleled levels of service and quality to Kahala guests."

Owner of isle refinery names new CEO

Houston-based Par Petroleum Corp., which operates the former Tesoro refinery in Campbell Industrial Park, has appointed Joseph Israel to be its new president and chief executive officer, effective Jan. 5.

Israel is the former senior vice president of Hunt Refining Co. and was chief operating officer of Alon USA Energy. The company also announced that William Monteleone, its former CEO, will become Par’s senior vice president of mergers and acquisitions, and remain a member of Par’s board of directors. Monteleone grew Par’s assets nearly tenfold in two years, from about $100 million in 2012 to nearly $1 billion in 2014.

In September 2013, Par Petroleum bought the refinery, along with Tesoro’s chain of 31 gas stations and other assets, for $75 million in cash, with up to $40 million more in payments contingent on the Hawaii operation meeting certain performance targets over the subsequent three years.

Nominations sought for marketing awards

The American Marketing Association Hawaii Chapter is accepting applications for the 38th annual Hawaii Marketer of the Year awards.

Companies may enter their work in categories including: Best Marketing of a New Product or Service, Best E-Marketing, Best Rebrand Marketing, Best Marketing of an Event and Best Non-Profit Marketing.

Application submissions cost $25 for members and $40 for nonmembers if filed by Jan. 16.

Also this year, applications for new individual recognitions will be accepted for AMA Lifetime Achievement award and AMA Young Marketer of the Year, for which there are no submission fees. The organization also has extended the deadline for applications to Jan. 16 for the 2014-2015 AMA Hawaii Student of the Year.

Those interested in submitting nominations can find the application online at the chapter website at amahawaii.org.

On The Move

» Kaiser Permanente has named Rudy Marilla vice president of resource management and clinical operations support. He previously served as assistant administrator of utilization management, continuing care, outside medical and performance improvement for Kaiser Permanente San Diego.

» Damon Key Leong Kupchak Hastert has hired Ikaika Rawlins as an associate for its real estate, corporate law and estate planning and probate practice groups. He was previously a summer associate for the firm, and has also served as a judicial extern with Hawaii Supreme Court Chief Justice Mark Recktenwald. His experience also includes nearly five years in commercial real estate with CB Richard Ellis, and he was a trustee aide and committee clerk for the Office of Hawaiian Affairs.

» The USS Missouri Memorial Association has promoted Jason Morrison to vice president of facilities and engineering. He joined the association in November 2013 as chief engineer and also serves as the association’s environmental officer. His naval architecture experience also includes six years of service in the Marine Corps.

Ship Ahoy!

Wednesday’s ship arrivals and departures: