Hawaiian Airlines: Mixed News

Jul 23, 2008 4 Comments by Jeff

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.

Industry News

4 Responses to “Hawaiian Airlines: Mixed News”

  1. Island Boy says:

    What are you basing your future predictions on? Not getting A330’s, I would like to know the inside information that you think you know better then any other industry observers?

    I you have an opinion, thats fine, but back it up with some facts, instead of something that you feel.

  2. Dave says:

    I need to agree with Island Boy.

    It’s great that you post your opinion but it would be great if you could link to sources of information that you base these opinions on. Otherwise they might seem like crazy ideas or personal opinions bases on a single personal encounter.

    For example:
    “Continental is the clear standout as best to Hawaii.”

    What do you base this statement on? Was there some sort of national survey that you could link to? Or maybe you flew both airlines in first class and you personally prefer Continental?

    “Hawaiian is still most likely a candidate for near term acquisition by one of the larger players, as we have previously indicated.”

    WOW! – That sounds like crazy talk to me. Why would you think that?

    “We have seen reports of numerous flight delays and cancellations at Hawaiian recently. The reason appears to be over-utilization of aircraft.”

    Again… Do you have a link to something? How do you define over-utilization? Is that the same standard that the airline industry uses to define over-utilization? many things can cause delays. Why do you say it’s caused by over-utilization?

  3. Rob says:

    Comment from Beat of Hawaii,

    Hi Dave and Island Boy,

    Our travel forecast is based on 30 years of personal experience and extensive research in the industry, and comes from analyses of many different sources and contacts. We enjoy sharing our travel forecast with our fast growing readership and know that not everyone will always be in agreement. Only time will tell.

    Regarding sources, we choose to not always list them. We do not write Beat of Hawaii as a news digest. In many of our posts we provide our own insight into what’s happening in the industry based on our research.

    Dave, I found through a Google search of your name that you are, or have been associated, with Hawaiian Airlines marketing. It seems therefore, that you might be biased on any negative report we write on Hawaiian Airlines.

    Beat of Hawaii is a non-commercial site that is not owned or affiliated with any travel related company. Our reviews remain unbiased to the best of our ability.

    With that being said, here are three examples on the questions you raised. 1). First Class seat pitch on Hawaiian is generally 42 inches and on Continental it’s a comfortable 55 inches. 2). Regarding Hawaiian being acquired, I gave an industry example in our “Three Travel Industry Changes Which Will Affect You,” post from the CEO of Qantas. 3). Finally, flight delays on Hawaiian are easily researched and discussed on travel forums.

    Thanks for the discussion.

  4. Dave says:

    Thanks Rob,

    Yeah… I worked for Hawaiian a while back & I’m still a fan even though I don’t work there any more.

    I didn’t think your opinions were negative, just kind of confusing. Even thought I don’t work in the airline industry anymore, I still enjoy keeping up on the latest news. Some of the things you say are somewhat thought provoking… I would love to read whatever it is that you are reading that makes you come to some of your conclusions.

    For example: If I were to say that Quantis will likely buy Go! airlines in the next few months… You would likely want to know where I am getting my information or want to know why I would come to that kind of conclusion. It’s only natural.

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