Interesting update today vis-a-vis Hawaii airfare price cuts, as bellwether Hawaiian Airlines gets ready to compete with Hawaii newcomer Southwest Airlines. Here’s how things are lining up.
Hawaiian Airlines.
The company’s new CEO Peter Ingram commented again last week on this most talked about of subjects for Hawaiian Airlines. Regarding competition with imminent Southwest Hawaii flights, Peter said:
“I am very confident that we have cost structure that will allow us to be competitive…. We compete effectively because we focus on a single thing, our unique brand of Hawaiian hospitality. How we do that when Southwest eventually enters the market won’t change…. We won’t try to do what they do.”
Regarding how Hawaiian will respond to anticipated lower fares coming with the Southwest Hawaii entrance, he added: “We’ll have to respond, like we do today, to the competitive landscape.”
Top Priority remains A321neo fleet. The company believes that the new fleet is one of their most important strategic weapons on routes between Hawaii and the US mainland.
Competition with Southwest Hawaii flights. Peter continues to assert that they aren’t scared about competition from Southwest Hawaii. He previously complimented Southwest on their four decade record, and said that competition in our Hawaii market isn’t anything new. “…(When) we had Allegiant start service to Hawaii and I remember a lot of the investment analysts…were sort of prophesizing the immediate doom of Hawaiian Airlines. We’ve had Alaska coming into the market…ATA was in the market…. There is a long list of competitors we have dealt with.”
Beat of Hawaii’s take.
On the A321neo strategy, we concur that this plane provides best possible mix of efficiency, range and relative comfort needed in our unique tourism market. The company took delivery of two additional aircraft just last week. The A321’s give Hawaiian, for the first time, an appropriate fleet for highly desirable “thin” and direct to neighbor island routes.
Regarding competition: While there has always been strong competition in our market, 2018/2019 unquestionably represents a paradigm shift in that regard.
This is reflected in the breadth and depth of ongoing sales with never before seen discounting, including $99 Hawaii flights from two airlines earlier this year and the on-again off-again Hawaii airfare sales from Alaska, American, Delta and United. We haven’t seen this much competition between the existing airlines before. That together with extreme uncertainty being brought about by an entrant the magnitude of Southwest Airlines. Also, when addressing prior competition, we can’t compare the legacies, Allegiant and ATA to Southwest.
On the unique nature of Hawaii and the Hawaiian Airlines brand, Beat of Hawaii addressed that when we flew on the Hawaiian Airlines A321 inaugural flight earlier this year.
When will Southwest Hawaii flights commence?
This is the million dollar question and an answer could come any day. SWA is still hopeful of obtaining ETOPS certification required for Hawaii flights in time to start service from California by the end of the year. As acknowledged repeatedly by Southwest, however, this is partially outside their control. Thus flights might not begin until early 2019. We are still awaiting Southwest Hawaii test flights (called “proving flights”) from the mainland which will be one of the next indications of their imminent arrival.
Updated 7/5/18.
Davilyn says
Will Southwest be flying Hawaii to Vegas. Hawaiian turned their bulk head seats that people need for medical reason ….now you have to pay 80.00…..can’t sit in the regular cabin seats to tight. The red eye flight they give you a drink and a bag of nuts then you don’t see them till you ready to land…
Linda B says
I sure hope we hear soon. We will be flying to OGG end of February. Personally, I like Hawaiian airlines but I don’t like their prices. I am going to wait as long as I can to book.
Dawn says
I too have been a loyal Hawaiian customer for more than 20 years. Granted, I only travel to the islands once or twice a year. I’ve stuck with Hawaiian through the years because of schedule, price and pure loyalty. But that all ends this year. Hawaiian’s prices have gone up disproportionally vs their competitors, their mileage redemption also seems out of whack. And don’t even get me started on their ridiculous inter-island prices. But they were cheaper than other legacy carriers when it came to luggage. I’ve had their credit card for many years, so that takes care of one suitcase. We travel with our bicycles and Hawaiian has been cheaper than many others. But when I finally took a look at Alaska, I was shocked. Without any sale, their prices were lower and they don’t differentiate between a suitcase of clothes and an oversized bike bag. Yep, Hawaiian charges me $100 from the Mainland to Hawaii. Alaska, $0. Then you add in the $99.00 companion fare for credit card holders which is far above the $100 credit that you get from Hawaiian. Alaska is adding a direct flight from my home airport (SMF) to our favorite island (KOA), and then with Southwest flying from Sacramento hopefully in 2019, I think I may have just flown my last Hawaiian flight.
Bruce M says
Right on! Hawaiian Airlines was built on the backs of locals flying inter-island. Now that they’ve gone international perhaps it’s time to show some aloha for the ones who have had minimal choices between islands. Hope SW makes a huge splash!
Not a happy camper.
Bruce M
ane t says
Aloha. I sure hope SouthWest comes in with inter island flights. Hawaiian has no real competition and charges a fortune. They advertise sales but that is if you fly at 6 am or really late at night. For those of us who have to fly over for medical or business reasons it is completely ridiculous!!!! Not to mention there is NO MERCY if you are involved even in a medical emergency – unless you are in the hospital. Even United is better than that! So over Hawaiian!!
Dean D says
Interesting the AB321, having sat in American Airlines AB321’s I have to admit they have the most uncomfortable seats my wife and I have sat in. Thin padding, lower part of the seat is too short (rear of seat to front of seat). The tray table is too small for even a small laptop, it has a “form fitting” cut out so the tray has an opening where your body is. The tray table was too tight of a fit for even the skinny guy sitting next to me, let along a bigger guy like myself. I can’t imagine a long flight on one of those, we had a short flight from DFW to DEN and were pretty miserable.
Hopefully Hawaiian addresses these issues on their configuration of this aircraft.
Thanks,
Dean
Beat of Hawaii says
Hi Dean.
Yes compared with legacy wide-body planes, the new single isle ones (both Airbus and Boeing) are very tight. Seems to be the way of the industry rather than airline specific.
We often end up upgrading at extra cost just to get back to the basic comforts of days gone by.
Aloha.
Rick N says
I want to fly from the Bay Area( Oakland or S.F.) to Maui on Sat Nov. 24 returning on Sat Dec. 1st. Since it appears that Southwest won’t be flying to Hawaii by then, when do you suggest I book the tickets and do you think Hawaiian Airline is the best way to go?
Thanks,
Rick N
Beat of Hawaii says
Hi Rick.
$489 either on Alaska or Hawaiian RT for your Saturday flights. Really good price. Either is great. Wouldn’t wait.
Aloha.
Paul says
Competition is not what this should be about! Lower prices don’t come from competition. Prices of flights is generated by how many people fly to a certain destination and returning from that destination, fuel prices and consumption for the flight, employee wages benefits to get the flight scheduled and on to it’s destination and back,ground handling of baggage’s and cargo, air craft maintenance and pre-flight inspections, safety training for flight crew and ground handling crews. The flight times schedule bidding. Every major Airlines that are at the top 10 in America has this cost to factor into ticket pricing each passenger. These are just a few of thing that go into consideration and cost of getting us there and back safely. Competition just adds more flights to go to certain destinations.
Timothy W says
Paul,
While a cost-of-services analysis is key to determining airfares of any given airline, it is ultimately 100% controlled by competition’s pricing because people speak with their wallets. However, the lower pricing introduced by competitive airlines will force others to follow suit to prevent losing market share. Therefore, competition will overrule most other factors, including desire for profit.
Mic D says
Yes, it’s called “the Southwest affect”, google it, it’s a phenomenon that says every market Southwest enters, they eventually dominate it, but in doing so, their competitors are forced to lower air fares as a result.
Francis says
It is long past due for Hawaiian to have some formidable competition after years of arrogant, selfish and uncaring policies by its former CEO. His only purpose was to make money for himself and HA shareholders with little regard for passengers, crew and employees. As a decades-long, loyal customer of Hawaiian since Aloha met its demise, I was treated with little respect or value even as I nearly earned Platinum status just from vacation flying after retirement. Even appeals to supervisors and a letter to the CEO went unheeded. I’ll never pay for another Hawaiian flight, but will continue to use up my built-up Hawaiianmiles until they are exhausted or Hawaiian goes under.
Dawn says
Aloha. I’m a HUGE fan of Southwest & love NO baggage fees! This is my 1st trip to Hawaii to celebrate our 15th anniversary in September. It seems like price gouging for Hawaii Air to charge $25/bag for a 35 minute flight on top of ticket fees. I’m paying for the trip with my social security for this #1 bucket list dream (4 islands in 3 weeks.) This will be the only time I can afford to do it. For our 2 checked bags it will cost us $250 in bag fees on top of almost $2K in airfare. Southwest = cheap fares & no bag fees. Hawaiian Air = lots of money. Heavy sigh.
Lorna says
Dawn, it is probably too late if you already bought your ticket, but if you get a Hawaiian Credit card, your bag is free. I travel to Hawaii a lot and it really helps. Although I usually fly United, I have a CC there as well.
Have a wonderful trip. Aloha
Msrk says
Join Hawaiian air mileage program. It’s free and when you’re a member the baggage fees are cheaper ($15 vs $25 for 1st bag, $20 vs $35 for 2nd bag) for inter island flights. I did this last year and saved $60 In fees by signing up me and my family. Enjoy your trip!
Kathy J. says
We never check luggage to Hawaii any more; carry-on only. No problem, and no lost luggage!
jackie says
I totally understand what you are saying about plane costs. yes southwest is the best .hoping it starts soon as my daughter moved to the big island two yrs ago. I live in florida so it makes it more costly. I fly united because I have the credit card and with it get free bag ,priority boarding, even priority security which is good as I am retired and disabled. this past month I flew the shortest flight which was tampa to denver ,denver to Kona. we had to drive 2.5 hrs to airport but it was still cheaper. my ticket was 921.00 plus think 56.00 for the insurance. I recommend whatever airline you use to get the insurance. I t takes me six months to save for a ticket and little spending money. oh forgot one thing with a united credit card I also pay nothing for my seats unless I want first class. Happy 15th anniversary to you
Linda says
Will southwest be flying from LAX to maui by september this year?
Randall says
I live in Dallas and we have a neighborhood couple that both work for SWA. They are saying not to count on LAX to HNL or OGG anytime soon. Evidently SWA concerned about a big percentage of those flights being taken by “non revenue” points holders, particularly from CA and TX. I personally have over 100K SWA points and am waiting anxiously as well.
Michelle says
Unfortunately, no. My husband and I will be relocating to Hawaii when Southwest opens flights. Though we have received the initial confirmation of selection for relocation, there has not been any additional updates to final dates. The initial date we had was possibly “mid” Oct, but that is coming up fast and no update yet.
Tim says
Hopefully, the first revenue flight will be OAK-HNL on an aircraft adorned with “State of Hawaii” livery.
Diane says
Thank you for this informative information!
So we plan to travel at the end of June from Las Vegas to Maui. We were hoping for Southwest to be in action by then. So reading this makes me think, we should book now? What do you advise?
Beat of Hawaii says
Hi Diane.
No they won’t be flying by then. Suggest booking now.
Aloha.
Linda B says
Diane, have you tried try the Hopper app? I use it quite often. It is a price predictor for when you want to fly. It gives you an idea of when to book, now or wait.
Laura G says
We NEED true inter-island service that would break the choke hold that Hawaiian has had for some time now. We need AFFORDABLE, competitive inter-island. And we need it yesterday!