The End of the Interisland Fare Wars: Aloha and Hawaiian Raise'Em
Where: Statewide || Grouped in: Statewide Any Kine || Tagged:
Upstart go! airlines has been keeping the two incumbents, Aloha and Hawaiian Air, on their toes with unsustainably low-priced tickets for interisland travel (as in, sometimes less than $20). This has been hurting Aloha and Hawaiian, which have much higher cost structures than does go!. Rising fuel prices in particular have been a bite in the behind. But with go! parent Mesa Air facing what appears to be a sobering $80 million fine for what a U.S. court ruled to be unfair behavior (read: pretending to be interested in buying Hawaiian and Aloha out of bankruptcy, seeing key documents, then using that info to start go!), the two old-school airlines might be anticipating a return to the old days when interisland flights cost $200 round-trip. Why else would they be slapping a fuel surcharge on fliers, particularly at a time when Hawaii travel number continue to decline? Any ideas?
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Comments
Gecko said:
“This has been hurting Aloha and Hawaiian, which have much higher cost structures than does go!.”
I guess writer hasn’t done his/her homework. A survey was done to see the cost structure is between the three carriers, oddly enough go!’s cost was highest followed by HA and then AQ. This is based on seat miles not all the other infrastruture that you see on the ramp.
—12/09/07
Alex said:
I’d like to see a URL of that survey and take a look. Considering the cost structure of running mid-sized jets on short-hop routes, I find it VERY hard to believe that Aloha and HA have lower cost structures than go!, for numerous reasons (union costs, fuel costs, maintenance costs). So not sure if what this poster is referring to since they give no additional details.
—12/12/07