Could Another Hawaii Airline Be On the Brink of Failure?

As we head into the final day before learning whether Alaska Airlines will be permitted to acquire Hawaiian Airlines, we also note that a vital interisland carrier in Hawaii for the smaller islands, is currently under significant pressure and scrutiny due to a series of severe operational and financial challenges that raise questions about its long-term viability.

Fleet grounding at Mokulele and operational disruptions.

Recently, Mokulele Airlines grounded a portion of its fleet for three days which is concerning, at best. They reported the grounding to the Hawaii Department of Transportation, saying it was due to maintenance discrepancies identified during routine checks.

This led to severe disruptions affecting many passengers, with the airline operating at half capacity to Molokai and limited service elsewhere. While the airline has attempted to minimize the impact by working with other carriers, the situation has exacerbated concerns about its reliability.

Financial struggles and federal aid prospect.

Mokulele’s financial challenges have been particularly evident in its operations on the island of Lanai. The airline has sought federal aid under the Essential Air Service (EAS) program to sustain its service to Lanai, which it has deemed unprofitable without subsidies to maintain the route. Their website now says Lanai is available by charter only.

The airline’s future on the island, along with its overall financial health, remains uncertain as it continues to face rising operational costs, a lack of scale, and fluctuating passenger demand.

Merger at Mokulele Airlines Offer Unique Hawaii Flights

Public backlash and trust issues hit Mokulele.

Mokulele’s struggles have not gone unnoticed by the public. Many passengers have expressed dissatisfaction here on Beat of Hawaii and on other forums. Complaints include the airline’s frequent cancellations, lack of communication, and inconsistent pricing. These issues have led to a decline in customer trust, further complicating Mokulele’s efforts to stabilize its operations and finances.

Many travelers have expressed deep dissatisfaction with Mokulele Airlines, particularly criticizing its customer service. Reviews describe staff as rude, unhelpful, and even hostile, with one incident where a customer was shouted at for simply inquiring about their luggage.

Flight cancellations and sudden schedule changes are common, leaving passengers stranded and without proper communication or explanations. Baggage issues also plague the airline, with luggage often delayed and passengers forced to retrieve it themselves without compensation. These recurring problems have led many to vow never to fly with Mokulele again, citing it as an unreliable and stressful choice for interisland travel.

Mokulele Airlines is at a crossroads.

The airline is facing both operational disruptions and likely financial instability. The combination of these challenges has led to growing concerns about whether the airline can continue to operate effectively or if it might be on the verge of collapse. As the situation develops, travelers should keep informed and consider alternative travel options within Hawaii.

Southern Airways Express, the parent company of Mokulele Airlines, has undergone significant changes, including a merger with Surf Air Mobility Inc. in 2023. Despite the potential benefits of the merger, Southern Airways Express has had financial and operational challenges. For example, the company was recently fined $280,000 by the FAA for a claim it operated flights with an unqualified co-pilot.

Do you fly on Mokulele? If so, please share your experiences with the carrier.

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11 thoughts on “Could Another Hawaii Airline Be On the Brink of Failure?”

  1. I believe that it is on the bring of collapse. Some of the talks on the island:
    1. The new parent company, Surf, has no one in it’s c-suite with airline experience.
    2. The new president recently promoted and assigned to Hawaii has zero commuter airline experience (not good). He was in charge of flight attendants and in-flight experience at big airlines.
    3. Here is the part that everyone needs to be concerned with – The maintenance staff are resigning and others are the brink of resigning.
    4. Companies that supply the airline with aircraft parts are closing their accounts. Alarming.
    5. Starting pay for airport personnel is at $12 per hour.

    1
  2. I have flown Mokulele more than a few times. Staff and process have been always been pleasant. I flew from OGG over to Hana side was a fantastic flight. My family is on Maui but never flew over to Hana before. Amazing ride as the pilot took it real low and it was incredible to see the landscape of a place I know well from the air. On the way back a few days later it was after an incredible amount of rain. They flew low, so we could see all the water flowing like waterfalls from the land into the ocean. One of my most memorable flights of my life. Please try and stay open. Your service to locals is very important.

    1
  3. Stay tuned. You are going to see a lot more businesses in trouble, especially on Maui. Thanks Mayor Bissen and Governor Green.

    16
  4. I’ve only flown on Mokulele once on a round trip to Molokai several years ago. To me it was actually kind of a fun experience. The staff were pleasant and flight crew was accessible. (After we landed on Molokai I inquire if we were on VFR flight following and they said we were). On our return, a passenger helped the crew load his wife’s wheelchair in the cargo hold. All were pleasant. A shame if it goes away.

    8
  5. Larry Ellison owns 98% of Lanai.
    He is worth 169 billion dollars. Let him pay up.
    No taxpayer money needed or deserved.

    23
  6. Smaller airlines on low volume local flights have had financial
    difficulties for many years all over the U S.
    It’s not a new problem. It’s like trying to operate business
    balancing on a knife edge.

    5
  7. OMG– I Love Mokulele!! I live east side BI but my family is on Maui. I ALWAYS fly Mokulele from MUE (Waimea) to Ogg as No parking fees, No TSA, always friendly, helpful staff esp. @ MUE! All is SO much easier than dealing w/SW, HI, for interisld to Maui from BI. Yes, there are schedule chgs but have only been chging flt times by 1/2hr or so.

    Please do not suspend service!!

    5
  8. Recently flew Mokulele from Oahu to Lanai, then again Lanai to Maui. We were aboard Cessna 208 Caravan Turboprop aircraft. Staff was nice, pilots were young, but professional. The Caravans fly fairly low, it was almost like a helicopter tour of the route. It would be a shame to lose them. We were on vacation but other passengers were workers and locals.

    5
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