May 09 2008
If you’ve followed Beat of Hawaii, sit down for this one.
So much has changed in travel since our January 5 and subsequent posts in which we could not support Superferry as a viable alternative to inter-island air travel. Here are our current updates and recommendations:
Apr 28 2008
While The Continental/United merger is at least temporarily off, I’m not sure that we’ve heard the last of this deal yet. In the meanwhile, US Airways will be United’s “official” merger dance partner.
Continental is now likely to pursue a deal with American Airlines. It is speculated that such an alliance would have the companies work together in many ways, but might not include a full merger of brands and operations.
Apr 17 2008
Here’s a last minute Hawaii cruise deal that came across my desk this morning, which is too good not to mention. The cost is less than half of what we are now seeing for comparable cruises.
The caveat is that one person must be 55+ to get these rates. I’d give them a call, however, no matter what your age. Or grab your parent or other favorite senior (we’re available).
The ship is Royal Caribbean’s Radiance of the Seas, which is highly rated on Cruise Critic.
Rates per person are $599 inside, $799 outside, and $999 balcony.
You can book at Online Vacation Center.
Have fun and let us know how you liked it!
Apr 17 2008
Hawaii air travelers are swimming upstream at the moment:
As a result, airfares are up 30% over the same time last year and it is becoming nearly impossible to find reasonable airfares for any season. Further, the whole mess is completely unpredictable.
Here’s what we suggest: Continue Reading »
Apr 09 2008
Mesa said in an SEC filing yesterday that it’s seeking shareholder approval to issue up to $37.8 million in new common stock to pay off bondholders.
If they do not have adequate cash resources, “… the Company could be in default… and the Company’s business and operations could be materially adversely affected. ”
The Honolulu Advertiser quoted industry Analyst Scott Hamilton: “This could mean a bankruptcy filing if shareholders don’t go along.” He also said that even if shareholders do go along, it does not remove the risk of a bankruptcy because of the dire language in the filing.
This follows a string of bad news for Mesa, including the loss of a $20M Delta Airlines regional contract, its dangerously low stock price ($0.97) and market valuation, this week’s S&P delisting and an $80 million judgment to Hawaiian Airlines.
As I’d previously indicated, we believe Mesa owns nearly 60 of its regional jets outright, which means that cash could also be raised through a potential lease-back arrangement.
While Mesa may well still have some life left in it, I suggest travelers using Go! inter-island service be extremely cautious.
Apr 08 2008
1. Hawaii Superferry. The ship was back in service yesterday with few passengers, and many of those few seasick. Maui News reported high swells, rough seas, and vomiting passengers. Personal reports indicate yesterday’s first day back yielded approximately 45 passengers and 15 cars in each direction. As you’ll recall, capacity is nearly 900 passengers.
2. Orbitz expands offerings:
3. Honolulu-Kahalui air traffic. The route is ranked by OAG (Official Airline Guide) as the #1 heaviest traffic air corridor in the U.S. (#9 world-wide). Also in the U.S., Honolulu-Lihue ranks #7.
4. Inter-island airfares. These remain unchanged ($49/minimum). Hawaiian and Go! have yet to figure out how to work their new duopoly and successfully raise fares without re-engaging in yet another self-destructive fare war.
Apr 06 2008
1. With Aloha and ATA gone, what’s likely to happen next? We’ve got that covered. Airfares both mainland-Hawaii and inter-island are heading stratospherically high, at least for the moment. Prices are fast-changing, and running 30-40% higher than usual. They are not sustainable, however, so if you are still trying to find reasonably priced trans-Pacific tickets, I’d just chill for a bit and see what develops. If fares stay so high, it is a natural invitation to competition.
2. Superferry returns to service tomorrow. This will be sink or swim time time for the troubled boat. With 15 kt. winds and 6 foot seas predicted in the channel, check out the barf-o-meter to see how comfortable this ride may be. Or watch it here:
3. This week, Expedia acquired airfarewatchdog. While on the surface this may not seem to be significant, we previously discussed the negative impacts of the ongoing consolidation of the travel industry. This trend is rapidly accelerating.
Apr 03 2008
With this week’s demise of both Aloha and ATA, and with the Superferry still in dry dock, have we seen the last of the changes in our State’s now extremely liquid transportation market? Or is this just the beginning.
One thing is virtually for certain. The cost of inter-island transporation is about to go up, way up. Looking for tickets today already gave me an indication of where the carriers are heading. I expect the bottom one-way fares will be $59 (or higher) starting next week. However, most tickets will be quite a bit higher, in the $79-$89 range.
Having been an active observer of both our local market and international transportation for decades, here are some issues I am pondering:
Apr 01 2008
With Hawaiian and Go! airlines back in a traditional Hawaii duopoly, I expect to see airfares rise in the next few days. While you may still find a few $49 inter-island fares, the bottom will likely be $54 or $59. Both remaining carriers are desperate to raise fares, enough so that they may even cooperate in this regard.
My Recommendation: This may be the best time to buy inter-island tickets for the forseeable future. When possible, I’d fly Hawaiian for their convenience, comfort, and a more professionally managed company. Also consider IslandAir, if their limited routes meet your needs.
Superferry Update: It’s due to resume service between Oahu and Maui starting April 23, with fares of $39 through June 5. If they start and continue to operate without interruption (which they have not previously been able to accomplish), this will be the lowest cost Superferry ticket until then.
Thereafter, fares will rise to $44-$62 plus an additional 35.3% fuel surcharge, making Superferry the highest priced (and most unreliable) choice.
As for whether Superferry will return to Kauai, I don’t see any indication thereof. They have removed all references to Kauai on their website, and their planned community outreach here has not happened.
Mar 26 2008
We’re updating our earlier post on Aloha Airlines recent bankruptcy announcement.
The latest:
What you should do:
The saddest part of this story is that Aloha is one of our state’s largest employers and their demise would mean thousands of lost jobs.
Stay tuned.
