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Hawaiian Inter Island Who Will Win  
User currently offlineCanflight From Canada, joined Aug 2004, 58 posts, RR: 0
Posted (2 years 5 months 5 days 12 hours ago) and read 2715 times:

Let the inter island battle begin. Who will win...

1. Island Air
http://www.prnewswire.com/news-relea...t-jet-prop-aircraft-163105376.html

vs.

2. Hawaiin Airlines
http://www.bizjournals.com/pacific/n...ian-airlines-parent-to-expand.html

[Edited 2012-07-19 18:49:25]

6 replies: All unread, jump to last
 
User currently offlinealoha73g From United States of America, joined Jul 2003, 2372 posts, RR: 4
Reply 1, posted (2 years 5 months 5 days 11 hours ago) and read 2639 times:

Both will "win." The loser will be go!

Island Air has much lower operating costs than HA and will compete OK with "Hawaiian Express" (or whatever they call it) to MKK, LNY, JHM, etc. If anything it will good for the residents of those islands (MKK & LNY especially) since they currently are short seats at peak times and Island Air & prices/fees have really been climbing. My aunty lives on LNY so I hear about it alot.

Additionally I would expect both to expand in direct routes overflying HNL (OGG-LIH, OGG-ITO, KOA-LIH, OGG-KOA, KOA-LNY, ITO-KOA, JHM-KOA, etc). Check out an Aloha Island Air route map/timetable from the 1990s...it was pretty impressive. Perhaps we'll see MUE, HNM & HPV return. The area around MUE has really grown alot int he last decade so I think it would be the most likely.

On the HNL-OGG/LIH/KOA/ITO routes the ATR-72 will allow Island Air to keep HA's fares in check. I ultimately think go! will surrender and HA will stay with ~75% market share while WP will settle in at around 20% with the rest going to Pacific Wings, Mokulele, etc.

Either way it AWESOME that the local airlines are growing, expanding and evolving while go!
seems to be stagnating into obscurity & irrelevance.

-Aloha!



Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
User currently offlineCanflight From Canada, joined Aug 2004, 58 posts, RR: 0
Reply 2, posted (2 years 5 months 5 days 11 hours ago) and read 2630 times:

I wonder if Hawaiian Airlines will artificially keep fares low to put Island Air out of business. I can't imagine that they will sit back and let Hawaiian Airlines own such a huge percentage of the market. You think that they would have learned the lesson of Aloha Airlines.

User currently offlinemetjetCEO From United States of America, joined Jun 2007, 412 posts, RR: 2
Reply 3, posted (2 years 5 months 5 days 11 hours ago) and read 2510 times:

I may be wrong, but I get the impression that Island Air has a pretty large local following. Every time I fly them I notice that the flight crew greets a large number of passengers by name. Though Hawaiian has an amazing 717 product...I really think they cater to seperate customer bases...to a certain degree.

This may come from Island Air being the only option to/from some locations...then again my perception may be wrong. if I am right I think there will be room for both. I dont see Island Air purchasing jets anytime soon, and I think their local loyal base will keep them around.


User currently offlineHAL From United States of America, joined Jan 2002, 2572 posts, RR: 53
Reply 4, posted (2 years 5 months 5 days 10 hours ago) and read 2416 times:

Quoting Canflight (Reply 2):
I wonder if Hawaiian Airlines will artificially keep fares low to put Island Air out of business.

My take on this subject: Every time an airline in Hawaii gets an upper hand and starts raising fares, a new competitor comes in with under-cost fares (Mahalo, Discovery, Go!, etc). When that happens, every airline loses because nobody can cover their costs with $19 tickets. The new entrant comes in with big backing and tries to ride out the money-losing entry phase. Most don't make it, and sometimes the carnage takes out established airlines too (Aloha).

HA has learned from this. If they try to put all other airlines out of business, or just raises fares because there is little competition, someone else will come in and the vicious cycle starts all over again. The last thing HA wants to do again is fight a fare war, with its bank-account-draining fares. It's taken 80+ years of experience to get where they are now, and they don't want to lose their edge now. HA knows they have earned the trust and respect of the Hawaiian people. The last thing I'd expect is for them to either jack up fares, or to get in a fare-war with Island Air.

HAL



One smooth landing is skill. Two in a row is luck. Three in a row and someone is lying.
User currently offlineBthebest From United Kingdom, joined Jan 2008, 522 posts, RR: 0
Reply 5, posted (2 years 5 months 5 days 4 hours ago) and read 2210 times:

Quoting aloha73g (Reply 1):

Island Air has much lower operating costs than HA and will compete OK with "Hawaiian Express" (or whatever they call it)

True, but HA has the bigger corporate power and will most likely be able to combine operational areas to make efficiency savings.


User currently offlinehaynflyer From United States of America, joined Nov 2008, 151 posts, RR: 0
Reply 6, posted (2 years 5 months 5 days 4 hours ago) and read 2163 times:

Is there any reason why HA could not acquire WP? I know HA used to have props a few years back, but why invent the wheel again when there is already one serving your target market?

The announcement about the prop planes was almost an after thought in their press release about lower fares. Maybe they are trying to blunt the impact and avoid looking like a big, monopolizing bully by easing into the rural market and then just swallowing WP in one (small) gulp.

Food for thought.



"Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts."
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