6 thoughts on “Analysis of Hawaii Airline Competition Before and After 2020”

  1. Aloha Guys!

    I appreciate the well thought out research and information. I too have done some research on how the econimic downfall will likely impact the (passenger) airline industry, regarding Hawaii, and I think you are accurate. I thought I would add some further insight.

    One factor that will likely keep airfare prices from rising “to high” is that HAL, unlike All the other passenger carriers, is significantly more dependant on domestic and international vacation travelers to the islands. Not to mention, HAL is more (than any other carrier) directly tied to the dependency of Hawaii’s economic livelyhood, when it comes to the Tourism industry, as they have almost 4 times more flights than the next carrier (United). If ticket prices climb too high, while in a severe recession, and depending how long the economic rebound takes, it would likely lead to the crippling of Hawaii’s Tourism Industry and obviously a huge adverse economic affect to the State.

    The “fear factor” of traveling, after this crisis, by potential vacationers, over the next several months, will also affect how low immediately discounted prices will go, as the primary goal will be to get Tourism moving again as fast as possible (hopefully permanently).

    I believe (like you) we will see an immediate, short term (up to 6 months, possibly longer), discount in airfare prices to the Islands, followed by rising prices, as the industry reconfigures itself over the next few years. The best time to purchase and travel (for the best deals) will likely be immediately following the resuming of flights, as the industry bargains for passengers to fill their planes for the next 6 months to a year. The deeper and longer the recession, the more these factors will affect the impact of Hawaii’s Tourism, in my humble opinion. Thoughts?

    Just my “two cents” worth, and Mahalo, again, for the insight. I look forward to travel being reinstated and seeimg how this progresses…hopefully for the better.

    1. Hi Jim.

      Thanks for all of that! We are on the same page. Certainly the longer this goes on and when and how air travel overall reinstates, will be huge determinants of Hawaii tourism. We’re keeping fingers crossed that between sanitizing and masks and the passing of the initial wave, things will improve sooner than later.

      Aloha.

  2. I am amazed when spot checking flights from Memphis,TN current flights available thru 12/15 to Honolulu for $550.00. Normally from dates April thru the first week of December $750.00 the $550.00 is a windfall. Traveling on American and flights are great connection times. Is this the result of Airlines wanting future human bodies in the seats? I travel annually from April 23-30 celebrating my deceased Son’s birth excluding this year.

  3. I was very impressed with Hawaiian’s response throughout this. I noticed their CEO was at most of the Governors press conferences . Of all the airlines Hawaiian is crucial to the state. Not only the crucial service it provides, but as the States largest non government employer.
    I was surprised that SWA tried to keep flying and selling cheap tickets even beyond the quarantine order. They shouldn’t be here now, they may be needed when the state is trying to bring back tourism, but they overplayed their welcome in this.
    I wonder if the industry really does consolidate could we see a Hawaiian Alaska merger? Two really strong carriers that their routes and equipment mesh well. We should be hoping for quality air service in the future, not second class service.

  4. I am interested in what others think about flying in the new configured aircrafts after travel is reinstated. With the 3 seat configuration people will be elbow to elbow. How long before people become comfortable with that configuration?

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