Jul 23 2008
Hawaiian Airlines: Mixed News
There’s a variety of news today on Hawaiian Airlines I want to share:
1. Hawaiian’s traveler reviews are down.
Conde Naste Traveler readers have lowered their rating on Hawaiian this year from third to fifth place among domestic airlines. That still places them above any other carrier flying to Hawaii.
Beat of Hawaii: In the main cabin I would concur that Hawaiian beats the competition with their level of service and free meals. In the first class cabin, however, Continental is the clear standout as best to Hawaii. The first-class seats on Continental are more comfortable and there’s more privacy. Hawaiian, however, offers a better first-class meal.
2. Hawaiian fleet changes.
The airline announced it has canceled plans to add another 767 to its Trans-Pacific fleet this year. Their President and CEO, Mark Dunkerley, cited delays on delivery and increased fuel cost for the cancellation.
Dunkerley indicated that they are taking delivery of four additional 717 Inter-Island jets this year, and a fleet of new Airbus replacements for the 767 fleet starting in 2012.
No word yet if they will add 757 or 737NG planes to their fleet. This would allow Trans-Pacific service to smaller airports, including Kauai and Orange County.
Beat of Hawaii: Hawaiian is undoubtedly seeing an eroding demand for both Trans-Pacific and Inter-Island flights. They will likely come under increased pressure to cut prices in order to maintain market share and remain competitive to the mainland.
Within Hawaii, the uncertainty about Go! (and its parent company Mesa) will keep Hawaiian very strong. The high price of Inter-Island flights, however, will continue to soften demand for discretionary and off-season travel.
In the long term, Hawaiian can’t predict the future, and I believe the likelihood of their actually taking delivery of any Airbus planes is slim to none.
Hawaiian is still most likely a candidate for near term acquisition by one of the larger players, as we have previously indicated.
3. Aircraft stretched thin.
We have seen reports of numerous flight delays and cancellations at Hawaiian recently. The reason appears to be over-utilization of aircraft.
Beat of Hawaii: With the cancellation of the additional 767 craft, maintenance issues could result in an ongoing problem of Trans-Pacific delays and cancellations at Hawaiian. Inter-Island problems should be alleviated when the new 717’s start arriving shortly. We’ll keep an eye out.
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