Of all the businesses that face daunting challenges in today's economy, the airline industry has got to be at the top of the list.

That's what makes the leadership of Hawaiian Airlines CEO Mark Dunkerley so remarkable.

The history of Hawaiian Airlines has been as turbulent as any. In 1993, it filed for Chapter 11 bankruptcy with $200 million more in debts than assets.

When terrorists attacked the U.S. in September 2001, the bottom fell out of the airline industry. Hawaiian and Aloha announced plans two months later to merge, and by early 2002, the deal crumbled. In October 2002, Hawaiian laid off 150 employees.

Enter Dunkerley, a former British Airways executive, hired by former Hawaiian chairman John Adams to become president and chief operating officer in January 2003.

Within three months, Hawaiian had cut its popular interisland flight coupon program, asked for $30 million in concessions from employees and creditors and filed for Chapter 11 bankruptcy protection for the second time in a decade.

Dunkerley found himself placed in a holding pattern as Josh Gotbaum was appointed the airlines' court-appointed trustee. It wasn't until two years later when Hawaiian Holdings Inc. won the bid for the airline and the company emerged from bankruptcy that Dunkerley was appointed CEO.

Even before he got the top job in 2005, Dunkerley quietly won over Hawaiian employees. One worker at the time remembered him loading and unloading bags from airplanes and working closely with employees at all levels, from the cleaners to the ticket agents. Others said Dunkerley, a licensed commercial pilot, was hands-on and built trust within the company.

But what is most impressive about Dunkerley, and the company that supports him, is that rather than simply cutting their way into oblivion, they are already trying to grow the company before the market improves.

"This is the moment for bold investments in time, effort and money, such that when the economy turns, Hawai'i is poised to take full advantage," he said in one interview.

When Aloha Airlines went out of business in March 2008, Dunkerley tried to find jobs for as many former employees as he could. In all, 316 were hired.

Hawaiian streamlined its IT process, renegotiated third-party vendor contracts and outsourced what it could. When Mesa had to pay up $52.5 million to settle charges that it misused confidential information to enter the interisland market, Dunkerley paid its employees bonuses with the money, acknowledging their contribution.

Even with all the financial difficulties triggered by historically high fuel prices and dropping tourism numbers, Hawaiian is going ahead with the first of three new Airbus A330-200 aircraft next year — two years ahead of schedule — and two dozen other Airbus jets, the first of which will arrive in 2012.

The company also was named the nation's top-ranked carrier for service quality in 2008. Earlier this year, Dunkerley was named Salesperson of the Year by the Sales and Marketing Executives International of Honolulu for increasing its number of flights and improving its products and services.

"In terms of what's in front of the customer, we're not cutting back at all," he said. "The temptation may be to cut back, but that's not the best business decision. We find ways of being more efficient."

In this bleak business environment, Dunkerley is showing that a great company and superior leadership can still make a difference.