Pressed by its lenders, Aloha Airlines said it plans to hire a New York-based restructuring firm to look for new ways to cut expenses.

Aloha yesterday asked Federal Bankruptcy Judge Robert Faris to approve its hiring of Alvarez and Marsal LLC and partner Steven Varner to serve as the airline's chief restructuring officer.

Paul Singerman, Aloha's attorney, said in court papers that its lenders Abelco Finance LLC and Goldman Sachs Credit Partners LP have pushed for the hiring of a chief restructuring officer in exchange for continued funding.

Abelco and Goldman earlier this year committed $65 million in financing to the airline after it filed for bankruptcy reorganization in December.

But the lenders recently reduced the amount of funds available to the airline and declared Aloha in nonmonetary default of the loan, in a move that increased the interest rate on the loan from 11.25 percent to 14.25 percent.

Singerman said that Abelco and Goldman haven't been satisfied with the airline's restructuring efforts, despite significant progress during Aloha's bankruptcy.

The airline has shaved off more than $70 million in annual costs since December, Singerman said. Singerman said the airline's earnings before taxes, depreciation and amortization have increased during the three months ending July 31, to $14.1 million from about $2.6 million in the year-earlier period.

In its filing, Aloha said that Varner, who will be responsible for finding further cost savings, and his firm will be paid $550 an hour, plus expenses. Varner and the firm are entitled to a $25,000 advance but won't be eligible for a bonus or success fee.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.