Allegiant Air pulling out of Hawaii
Friday, 20 Nov, 2015
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Low cost carrier Allegiant Air said it will exit the Hawaii market next year due to increasing competition and high operating costs.
The Las Vegas-based airline will end service in August to Honolulu from Las Vegas and Los Angeles.
It entered the market in 2012 and had previously served Hawaii from several western cities including Bellingham, WA, Phoenix and Santa Maria, CA.
"We’re leaving Hawaii because the competitive environment in the market is uncertain and likely to worsen over the coming years," Jude Bricker, senior vice president of planning for parent Allegiant Travel Co., said in a video message addressed to workers.
"We want to simplify our network and get out of the 757 and move toward an all-A320 fleet and we want to make the investments commensurate with that initiative."
The Hawaii base will close and the current workforce of 46 will be relocated.
"Over the next several years the competitive environment in Hawaii is going to worsen," said Bricker, adding that he expects Southwest Airlines to enter the market, following the recent début of Virgin America.
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