Hawaii Airline News: February 2005 Archives

Hawaiian top in passenger load

Hawaiian Airlines reported 85.1 percent load factor in January, finishing at the top of the nation's airlines.

The airline's performance compares to an industry average of 71.7 percent, according to statistics published by Aviation Daily. Competitor Aloha Airlines doesn't report its performance statistics to this voluntary airline data report.

Other airlines that finished in the top five include JetBlue at 83.7 percent; Spirit 77.9 percent; Northwest 76.8 percent; Continental and United at 76.1 percent.

Hawaiian Airlines finished 2004 at the top with 85.7 percent load factor.

By Brian Berusch

HONOLULU -- When Southwest Airlines began selling seats on ATA Airlines’ flights to Honolulu on Feb. 4, it opened up Hawaii as a new frontier for the low-cost carrier.

“Southwest has very loyal passengers, and it can only help us,” said Marsha Weinert, tourism liaison for Hawaii Gov. Linda Lingle. “An increase in service is a positive overall for the state. And they serve some places we have been hoping to increase service from, as well.”

But not everyone sees it that way. Some tourism officials here say they are concerned the move will result in price wars between the carriers that serve the Hawaii market.

“We don’t actively oppose the Southwest-ATA code-share agreement, but when a new carrier brings in more or new people, it will change the fare structures,” said Frank Haas, marketing director for the Hawaii Tourism Authority (HTA).

“We’ve seen that trouble before and hope to actively support the legacy carriers [such as United, Delta and Northwest] that helped us through rougher times.”

Haas was referring to the price wars of the 1990s in which the airlines responded to reduced West Coast fares by decreasing the number of seats they offered to Hawaii.

Haas said the HTA “will do everything it can to market the legacy carriers who bring the growing number of visitors to Hawaii.”

“We won’t subsidize any airline, but we will spend dollars on marketing efforts,” he said.

The HTA spent $500,000 on airline cooperative marketing in 2004.

Weinert said she can understand why the HTA is concerned for the airlines that have served Hawaii for many years.

“Our legacy airlines are all experiencing problems. [The HTA] needs to ensure that [the carriers] operate, for our sake. But, really, there is nothing the HTA can do, as most of the carriers are in Chapter 11.”

ATA also announced that it is increasing service in and out of Hawaii. The carrier will launch a new Phoenix-Honolulu flight as well as another daily flight from Los Angeles to Kahului, Maui, beginning on April 3. Both flights will originate in Indianapolis, where ATA is headquartered.

Book flights to Hawaii Here.

By Michael Milligan

WASHINGTON -- The airlines rounded up an array of industry lobby groups to echo their concerns about the effect of the plan to raise the 9/11 security tax on airline tickets.

The Air Transport Association (ATA), the carriers’ main lobbying group, contends that thousands of airline jobs will be at risk and the long-term health of the overall economy will be placed in jeopardy if Congress approves the plan.

At a briefing here Feb. 10, a number of aviation, travel and consumer groups came together to reinforce that message, including the Travel Industry Association and the Competitive Enterprise Institute.

The emerging industry consensus is that the cost of airline security should be borne by the government.

James May, president of the ATA, warned the tax increase would significantly harm an already struggling airline industry.

“Last year, the industry lost another $10 billion, bringing our three-year total to a staggering $33 billion,” he said. “Now, if that isn’t the definition of a crippled industry, I’m not sure what is.”

The ATA laid out its concerns in a letter to Bush administration officials. It hopes to convince Congress to quickly hold a hearing on the matter.

“Over the past three years, our industry has eliminated more than 123,000 jobs, and, unfortunately, thousands of more cuts are expected in 2005,” May said.

And the airline’s economic troubles have a broader impact, he added.

“When aviation is damaged, the ill effects ripple across national and regional economies,” he said.

Also on hand to support the ATA’s position were representatives from the Air Travelers Association, the Regional Airline Association, the National Taxpayers Union, the Interactive Travel Services Association and the Americans for Tax Reform.

To contact reporter Michael Milligan, send e-mail to mmilligan@travelweekly.com.

Passengers aboard a United Airlines flight canceled after midnight
at Lihue Airport were forced to sleep on the grass and huddle on
sidewalks because a state employee refused to let them stay in the
terminal.

The incident angered tourism officials and Gov. Linda Lingle even
considered writing personal notes of apology to the 165 passengers.

Though the incident occurred in August, it has continued to
reverberate through tourism circles as an example of how, despite
spending $60 million on tourism marketing, the Hawaii visitor
experience can easily go bad.

"It's a terrible way to go about conducting business," said Rex
Johnson, president and CEO of the Hawaii Tourism Authority, the
agency that oversees tourism marketing.

On Aug. 9, United Airlines Flight 74 from Lihue to San Francisco was
delayed by mechanical problems. The airline decided to cancel the
flight at 12:30 a.m.

United staffers contacted local hotels but there were no rooms
available. No taxis were running and the car rental counters were
closed.

Airline workers and employees of the federal Transportation Security
Administration decided it would be easiest if passengers stayed in
the terminal overnight.

But the state employee in charge of the airport said the airport was
closed and that everyone would have to leave.

United's staff tried to make the passengers comfortable outside the
terminal with pillows, blankets and food from the plane.

Some called cabs and slept in the lobbies of hotels. A few took up
offers from the Kauai-based United staff members who offered to open
up their homes.

The flight took off the next morning.

After hearing about the incident, officials of various agencies put
together a plan to deal with such situations.

Marsha Wienert, the state tourism liaison, volunteered to be the
first to be called, after which she would call the island visitor
bureaus and hotel associations.

"There is no question that everybody at the airport knows the
procedure and the need to communicate," Wienert said.

If the hotels are full, the state's first option would be to let
passengers stay at the airport. If that's not possible, the next
option is to open up a gym, community center or other public
building.

Scott Ishikawa, spokesman for the state Department of
Transportation, said now airport operators are required to inform
supervisors of such situations.

"But it was a bad decision," he said. "And nothing can justify what
happened to the passengers."

Wienert said that when Lingle heard about the incident she wanted to
write a letter of apology to each passenger, but because of
confidentiality rules, the airline wouldn't release their names.

The awareness of how to handle such situations was recently tested
at Honolulu International Airport, where passengers were stranded
overnight after their flight was canceled.

Immediately, the airline and airport managers opened areas for the
passengers, gave them pillows and blankets, and made sure the
bathrooms were open.

"We didn't even need to rally the troops," Wienert said.

Reach Prabha Natarajan at 955-8041 or pnatarajan@bizjournals.com

Aloha Airlines reported that it reached a tentative accord with the union representing 330 mechanics and inspectors.

The tentative, five-year contract agreement with the International Association of Machinists and Aerospace Workers (IAM), District Lodge 142, is subject to membership ratification. Specific details of the agreement were not disclosed.

“Aloha’s mechanics have been working closely with the company to help us move ahead with our business plan,” said David Banmiller, Aloha’s president and CEO. “We’re gratified by their spirit of cooperation in this process.”

Aloha Airlines is increasing it's service between Orange County, California and Hawaii. Aloha Airlines now offers three roundtrip a day between John Wayne Airport and Honolulu; Kahului, Maui; and Kona on the Big Island.

Effective April 3 2005 Aloha Airlines will add a second flight each day to Honolulu, as well as a second daily flight to Kahului, Maui.

They will also add a daily non-stop from San Diego to Honolulu beginning on April 2 2005.

Aloha Airlines flight can be booked here.

Hawaiian Airlines to start assigning seats on inter-island flights beginning on March 1 2005. Hawaiian Airlines decided to make the change after tests showed that assigned seating makes boarding faster and more orderly.

Delta simplified its fare structure Jan. 5 for all travel within the continental U.S., slashing walk-up fares by as much as 50 percent, eliminating the Saturday-night stay requirement and other restrictions, and reducing the categories of fares to six in coach and two in first class.

Delta executives said they hope the changes, along with a halving of the change fee from $100 to $50 that took effect Dec. 15, will win back the trust of customers and stimulate more traffic on the carrier as well as stop them from defecting to low-cost, low-fare competitors such as JetBlue, Southwest and AirTran.

Under Delta’s new structure, dubbed SimpliFares and already implemented in Cincinnati for the past four months, one-way fares are capped at $499 for coach and $599 for first class, not counting taxes and fees.

Restrictions have been reduced, but not eliminated. Nonrefundable roundtrip fares require a one-night stay, but it can be any night of the week. For any purchase other than a full fare, a roundtrip ticket is required.

Book Delta Flights Here.

Southwest Airlines will offer code-share service, in partnership with ATA Airlines, beginning Feb. 4 between Southwest Airlines cities-via Chicago-Midway with flights to Honolulu. Flights can be booked through both Southwest and ATA. Industry sources say the deal means more low-cost flights from Midway and the ability for ATA to retain key routes.

Now that these two low cost carriers are working together, we at Travel Hawaii hope that this will be a the beginning of CHEAPER FLIGHTS to Hawaii.

In related news...ATA Airlines says it is launching daily direct service beginning April 3 between Indianapolis and Kahului, Maui. Effective that day, the Indianapolis-based carrier also is doubling its direct service between Indianapolis and Honolulu from one to two flights a day.

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