Bankrupt airlines could cloud Hawaii’s future
High-priced Hawaii has long been popular with tourists but observers question whether that will remain the case with the recent shutdown of Aloha Airlines and ATA, which will almost certainly lead to new airline service but at added costs.
“The abrupt shutdowns of ATA Airlines and Aloha Airlines won’t keep travelers off Hawaii’s shores altogether, but they could make an already expensive vacation destination even pricier and potentially put the leis and luaus out of reach for many,“ wrote the AP.
Hawaii tourism officials, however, say they are not concerned.
“Hawaii remains an extremely popular vacation destination, with January and February hotel occupancy averaging more than 80 percent statewide and increases in arrivals over the same period a year ago,” said John Monahan, President and CEO of the Hawaii Visitors and Convention Bureau (HVCB).
“I don’t see any threat to Hawaii’s tourist market from the mainland from the failures of ATA and Aloha Airlines,” said Scott Hamilton, a Washington state-based aviation industry expert with Leeham Company LLC.
He does predict a short-term decline in seats from the US mainland.
Hawaiian Airlines announced that effective May 1, it will begin daily Boeing 767 service from Oakland, a major market for Hawaii travel formerly served by Aloha Airlines and ATA.
Flights to and from Hawaii had been a key part of ATA’s business ever since the Indianapolis-based carrier scaled back its route network following a previous trip through bankruptcy in 2006.
ATA and Aloha’s one-two punch came at a time when the airline industry is already straining under rapidly rising fuel prices.
Carriers are likely to push fares even higher under current circumstances, say industry observers.
”When you pull out a major carrier, it’s going to create a lot of demand on the remaining carriers,” said Robert Mann, an independent airline analyst in Port Washington, N.Y.
Hawaiian Airlines is now the state’s biggest airline. The carrier flies to nine cities on the mainland – more than any other airline – including all four markets where ATA operated.
How high will fares be?
Some experts predict double current fares, which have fallen as low as $49 for one way.
Report by David Wilkening
John Alwyn-Jones
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