Welcome Go! Airlines to Hawaii for Lower InterIsland Fares!
Well, it won't start till June 9th, but man I can taste those low fares already! Go! airlines has started selling $39 one way inter-island tickets between all the major Hawaiian Islands (maui, oahu, the big island, and kauai). The cheapest tickets you could get from Aloha or Hawaiian for years now is $71 one way normally, so that is practically half-price!. Of course, if you go to Aloha or Hawaiian now, they are selling seats for $39 too. That makes me mad, actually. Either you can afford to sell seats for $39 Aloha and Hawaiian, or you can't. And if you can ... why have we been paying so much these last few years?!?
I welcome Go! with open arms, and am excited about the new, cheaper fares.
I welcome Go! with open arms, and am excited about the new, cheaper fares.
2 Comments:
Don’t be mad but don’t get too excited either. Everyone is likely loosing money for now. As soon as someone goes out of business the fares will be back to normal or even higher than that.
In this article, Jonathan Ornstein, chairman and chief executive of Mesa indicates that even Mesa is loosing money at this fare and that eventually fares will be higher.
http://www.bizjournals.com/pacific/stories/2006/03/20/daily55.html
“Sources at Aloha Airlines have told Pacific Business News that Ornstein has got to be selling seats at a loss because his jets seat only 50 passengers, less than half as many as they do.
Ornstein did not dispute that but said his cost structure was favorably affected by fact that he got the four regional jets with which he will launch the service on favorable terms.”
This article titled “New interisland air war likely to claim a victim” Ornstein indicates that it’s basically a war of attrition where the first company who bleeds to death looses.
http://pacific.bizjournals.com/pacific/stories/2006/04/03/story7.html
"Yeah, they responded to our $39 fares, but how many seats can they sell for $39?" he asked. "I don't think they can do it for long. We can fly planes empty and cover it. The Hawaii operation costs about $20 million to $25 million a year -- we can lose that much money. We can cover it."
In this article:
http://starbulletin.com/2006/02/07/news/story04.html
Jonathan Ornstein, indicates that someone will be going out of business.
"I think it will be a very competitive market, and it clearly will be a difficult situation with four carriers in the market," Ornstein said. "I'm not sure it's sustainable."
Later in the same article he indicates that there will be little impact on Hawaii employment opportunities because of existing union contracts.
“Most positions for Mesa's Hawaii operations will be filled by current Mesa employees because the company's labor agreement requires that Mesa employees get first choice, Ornstein said.”
Mesa is up to Hana 'ino in Hawaii with go! I can't really blame the public for flying them, enjoy the cheap fares while they last. At least one airline will not survive this fight. For more information on what Mesa is up to visit This Blog
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