spitfire1500
Well-known member
- Joined
- Apr 8, 2005
- Posts
- 836
http://biz.yahoo.com/bizj/060608/1299085.html?.v=4
bizjournals.com
New $19 interisland fare called goofy
Thursday June 8, 11:07 am ET
The marketing chief for Aloha Airlines says a new $19 fare posted by Mesa Air Group is " goofy."
It is the first time in this year's interisland fare war that a legacy carrier has done anything but match Mesa's introductory fares, however low.
Phoenix-based Mesa (Nasdaq: MESA - News), which on Friday begins its interisland service, called go!, announced a $39 introductory fare in March, then later a $59 round-trip fare, and now this week a $19 fare for limited seats and times.
Hawaiian Airlines matched the newest fare, but Aloha Airlines, which had matched the two previous fares, balked at this one.
"Over the years, we've seen many start-ups come and go with goofy fares designed to steal passengers away from Hawaii's homegrown airlines," said Thom Nulty, senior vice president for marketing. "While Aloha will always be competitive, we will also act responsibly to ensure that Hawaii's people have the high-quality, reliable, full-size jet service they expect from us."
Aloha appeared Wednesday to have reckoned that it can afford to stand firm against the $19 fare because it covers only a few unsold seats over a period of a month or less, depending on the route. But the airline has not specifically ruled out matching the fare later.
Mesa offered the fare only for selected tickets sold through Friday night for travel to be taken June 30 to July 9 on the Honolulu-Hilo corridor and June 9-July 9 on its other three routes.
"Interisland fares have been too high for too long," Mesa CEO Jon Ornstein said, "and go! is here to make a change."
Executives of local airlines, including Ornstein, Hawaiian Airlines CEO Mark Dunkerley, and Aloha Airlines CEO David Banmiller, have said that it was not possible to make a profit even at the original $39 fare, given current jet fuel prices, and local airline industry sources say these fares do not cover the cost of running interisland flights even if one does not count allocated costs such as administrative overhead.
There is a widespread belief in the Hawaii aviation community that there is not room for three players on the main interisland air corridors and that Ornstein intends to try to muscle Aloha Airlines to the sidelines. Ornstein has not said so, and instead has alluded to the possibility of expanding the go! brand name to the Mainland if it works out in Hawaii.
Published June 8, 2006 by Pacific Business News
bizjournals.com
New $19 interisland fare called goofy
Thursday June 8, 11:07 am ET
The marketing chief for Aloha Airlines says a new $19 fare posted by Mesa Air Group is " goofy."
It is the first time in this year's interisland fare war that a legacy carrier has done anything but match Mesa's introductory fares, however low.
Phoenix-based Mesa (Nasdaq: MESA - News), which on Friday begins its interisland service, called go!, announced a $39 introductory fare in March, then later a $59 round-trip fare, and now this week a $19 fare for limited seats and times.
Hawaiian Airlines matched the newest fare, but Aloha Airlines, which had matched the two previous fares, balked at this one.
"Over the years, we've seen many start-ups come and go with goofy fares designed to steal passengers away from Hawaii's homegrown airlines," said Thom Nulty, senior vice president for marketing. "While Aloha will always be competitive, we will also act responsibly to ensure that Hawaii's people have the high-quality, reliable, full-size jet service they expect from us."
Aloha appeared Wednesday to have reckoned that it can afford to stand firm against the $19 fare because it covers only a few unsold seats over a period of a month or less, depending on the route. But the airline has not specifically ruled out matching the fare later.
Mesa offered the fare only for selected tickets sold through Friday night for travel to be taken June 30 to July 9 on the Honolulu-Hilo corridor and June 9-July 9 on its other three routes.
"Interisland fares have been too high for too long," Mesa CEO Jon Ornstein said, "and go! is here to make a change."
Executives of local airlines, including Ornstein, Hawaiian Airlines CEO Mark Dunkerley, and Aloha Airlines CEO David Banmiller, have said that it was not possible to make a profit even at the original $39 fare, given current jet fuel prices, and local airline industry sources say these fares do not cover the cost of running interisland flights even if one does not count allocated costs such as administrative overhead.
There is a widespread belief in the Hawaii aviation community that there is not room for three players on the main interisland air corridors and that Ornstein intends to try to muscle Aloha Airlines to the sidelines. Ornstein has not said so, and instead has alluded to the possibility of expanding the go! brand name to the Mainland if it works out in Hawaii.
Published June 8, 2006 by Pacific Business News
