Canflight
Topic Author
Posts: 58
Joined: Thu Aug 19, 2004 9:10 am

Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 1:47 am

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]
 
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aloha73g
Posts: 1856
Joined: Mon Jul 07, 2003 6:30 pm

RE: Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 2:23 am

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!
 
Canflight
Topic Author
Posts: 58
Joined: Thu Aug 19, 2004 9:10 am

RE: Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 2:27 am

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.
 
Metjetceo
Posts: 146
Joined: Sun Jun 10, 2007 9:27 pm

RE: Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 3:15 am

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.
 
HAL
Posts: 1743
Joined: Tue Jan 15, 2002 1:38 am

RE: Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 3:53 am

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.
 
bthebest
Posts: 434
Joined: Thu Jan 03, 2008 4:35 pm

RE: Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 9:27 am

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.
 
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haynflyer
Posts: 116
Joined: Fri Nov 07, 2008 10:36 pm

RE: Hawaiian Inter Island Who Will Win

Fri Jul 20, 2012 10:11 am

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.
"Nearly all men can stand adversity, but if you want to test a man's character, give him power." - Abraham Lincoln

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