A New Inter-Island Airline?

Updated 10/9/08: We are now hearing that the new joint company will be in place by November 15.

Hawaiian and Go! may have company in Hawaii’s fast-changing inter-island market, and starting very soon.

The Honolulu Advertiser and other sites are reporting on a memo posted at Republic Airways’ mainland office which later appeared in Yahoo Finance.

Republic Airways is considering using 70-seat Embraer jets, of which they presently have about 64. The company may also hire nearly two dozen new flight attendants.

Their venture will purportedly operate in a code-share agreement, and under the name of Mokulele Airlines. New inter-island service could start operations within the next 30 days!

Mokulele, founded in 1998 by a native Hawaiian woman, is based on the Big Island. Mokulele is currently operating in partnership with Go!, under the name Go!Express. That eighteen month old agreement would end should this deal come to pass.

Republic Airways, based in Indianapolis, Indiana, owns Chautauqua Airlines, Republic Airlines and Shuttle America. This venture would be part of the Shuttle America operation.

There is also rumor that Alaska Airlines may in some way become involved in the deal.

The present inter-island duopoly of Go! and Hawaiian Airlines has become nearly as oppressive as that which previously existed between Aloha and Hawaiian. The 100 mile flights are now back in the $75+ range including taxes.

PS: We can only hope that the 70 passenger Embraer jets will be more comfortable than the extremely cramped 50 passenger CRJ-200 jets flown by Go!

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