Hawaiian Airlines' former bankruptcy trustee Joshua Gotbaum, whose request for an $8 million bonus set off a storm of criticism, will receive $250,000 under a final ruling by a federal judge.

In a 12-page decision yesterday, U.S. Bankruptcy Judge Robert Faris affirmed his tentative ruling last week which concluded that Gotbaum's $8 million request was excessive.

Hawaiian Airlines and its labor unions, which opposed Gotbaum's bonus, praised Faris' decision, saying it will allow the company to move on with its business.

"We're glad this issue has now been put to rest so we can focus on the future," said Hawaiian CEO Mark Dunkerley.

Gotbaum said in an e-mail that he was disappointed by the ruling.

"I am profoundly disappointed, because the judge concluded I did an 'admirable' job and that the results were 'remarkable,' yet awarded me compensation well below that of other trustees, and even of some of the people I supervised during the bankruptcy," Gotbaum said.

Under federal bankruptcy law, Gotbaum can appeal Faris' ruling, but only on the grounds that the judge abused his discretion, which is a difficult standard to prove.

Gotbaum, who served as Hawaiian's trustee from July 2003 to June 2005, was paid $50,000 a month plus $10,000 a month for expenses or a total of about $1.4 million during his tenure.

Gotbaum's attorney previously defended Gotbaum's fee request, citing Hawaiian's successful emergence from bankruptcy in June, when creditors were paid in full and shareholders saw their stock values rise.

Bruce Bennett, Gotbaum's attorney, argued in court last week that Faris' decision to reduce Gotbaum's award will make it difficult to attract capable trustees and professionals in future bankruptcies.

Kirk McBride, master executive council chairman for the Airline Pilots Association's 380-member Hawaiian unit, said he believes Gotbaum has already received adequate payment for his services.

Hawaiian's unions and management said that Gotbaum had little to do with the airline's successful reorganization, alienated the company's unionized workers and did not deserve any bonus.

McBride said Gotbaum's request for $8 million is equivalent to the amount of concessions that Hawaiian's pilots agreed to in 2003 before the company's filing for bankruptcy.

"Here we gave the concession on the front side that he was proposing to take it out on the back side," McBride said.

"From our perspective, what he was seeking was obscene. There was no other way to describe it."

In his ruling, Faris credited the airline's rank and file for their efforts in turning around the airline. He also said Gotbaum deserved much of the credit for bringing the airline out of bankruptcy as a profitable company.

"The results of this case were remarkable," Faris said.

"No other airline reorganization of which I am aware, and very few Chapter 11 reorganizations of any business, have produced the results comparable to this case. The trustee was a major participant in the case, and he performed his function admirably."

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.