Some revealing news this week vis-a-vis bellwether Hawaiian Airlines and Hawaii newcomer Southwest Airlines. Here’s new information on Southwest Hawaii plans including inter-island, how Hawaiian Airlines views its new competition, and the roll-out of the repeatedly delayed A321neo fleet.
Hawaiian Airlines
Top Priority is A321neo fleet. Peter Ingram, incoming CEO of the company spoke this week to the issues most pressing for Hawaiian Airlines. “We have endured some delivery delays in terms of getting those airplanes… (and) trying to manage the uncertainties around aircraft deliveries.”
Competition with Southwest Hawaii flights. Peter said that they aren’t scared about competition from Southwest Hawaii. He complimented Southwest on their four decade record, while saying 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 delays: this has been most unfortunate timing for Hawaiian Airlines, for which it bears no responsibility.
Hawaiian had hoped to start deliveries in 2017, which was delayed once by Airbus, then delayed again due to engine problems in the new fleet. These new planes will come, albeit perhaps at least six months later than expected, and with them Hawaiian will resume introduction of new mainland routes. This will get exciting again soon, we promise.
Regarding competition: While there has always been competition in our Hawaii market, 2018/2019 represents a new paradigm in that regard.
This is clearly reflected in the breadth and depth of ongoing sales with unprecedented discounting, including $99 Hawaii flights from two airlines in just the past few weeks. We don’t ever recall seeing this degree of competition between the existing airlines. That together with the extreme uncertainty brought about by an entrant the magnitude of Southwest Airlines.
Also, we can’t really compare Allegiant and ATA to Southwest. Lastly, Alaska and Hawaiian were able to both do well with somewhat constrained competition during the years when Hawaiian did not have an appropriate fleet for “thin” neighbor island routes, the way it will once the A321neo’s are on board.
Southwest Hawaii
Southwest CEO Gary Kelly was also interviewed this week and spoke to the subject of Hawaii flights.
Start of mainland flights. The company is still hopeful of obtaining ETOPS certification required for Hawaii flights in time for service from California to begin by the end of 2018. He acknowledged again, however, that this is partially outside Southwest’s control and thus flights might not begin until 2019.
Question of inter-island service. On the subject of flights within Hawaii, Kelly indicated this week that they are “strongly considering” also offering inter-island service. This is something that they have mentioned before, but not in such strong and repeated terms.
Beat of Hawaii’s take.
Regarding ETOPS certification and flights starting. We are awaiting Southwest Hawaii “proving flights” from the mainland which will be one of the next indications of their imminent arrival.
On Inter-island flights: we remain uncertain regarding Southwest inter-island flights. True inter-island service will require a fleet of planes and a significant Hawaii base of staff and infrastructure. These are big issues not undertaken lightly. One-stop (connecting) inter-island service is an entirely different matter. Mainland flights stopping at one additional island in both directions is easily doable from every standpoint. Will Southwest really decide to go head to head with Hawaiian on true inter-island service? We are simply not convinced that they will be ready to do that in the near future, if ever.
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!
Linda says
Will southwest be flying from LAX to maui by september this year?
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!