This week’s preparation for downsizing at Hawaiian Airlines, the largest private employer* in the state of Hawaii, does not bode well for travel or our economy. CEO Peter Ingram said 2,041 of the company’s 6,162 employees had received their upcoming furlough notices. Hawaiian Airlines employed about 7,500 people before COVID, almost all of whom are Hawaii-based. Ingram went on to say that the virtually imminent furlough was “Necessary to ensure our business survives and is poised to respond to opportunities when we can resume a more normal flight schedule.”
Hawaiian Airlines grounded and burning cash.
For the past six months, Hawaiian has been largely shuttered as the result of a 14-day mandatory quarantine for arriving passengers. With an unknown future based on when travel resumes and a hard to predict demand, the airline said it expects to be at least 15% to 25% smaller in summer 2021 compared with summer 2019. We sense that is optimistic. The company plans to “Build back the business over time from the smaller base.”
Hawaiian has been running through over $3 million daily during this tumultuous time. Nonetheless, the company is confident it will get through these unprecedented times.
Ingram had hoped voluntary departures and additional federal government support might forestall the inevitable. Thus far that hasn’t panned out. He reiterated his prior statement, however, that “The company would survive, but not as we were, not for a while… 90% of our people are based here in Hawaii. These are people who live and work and raise their families here in Hawaii.”
“We would welcome a six-month extension of… the CARES Act… Keeping our teams intact through March of next year would provide more time for demand to recover and hopefully reduce the scale of workforce downsizing. We will adjust our plans as legislative developments unfold. It is, however, critically important that we continue the preparations for furloughs while we wait to see what emerges from Congress.”
Hawaiian Airlines largely silent | Primary Hawaii travel stakeholder.
As the most influential and visible travel stakeholder in Hawaii, we would like to hear their voice at this uniquely critical time. For example, how do they envision providing an environment for the resumption of safe travel? That includes their take on testing (both pre-travel and on arrival), and any additional protocols that could help prevent their company’s further implosion, with the resulting impact on its employees. To say how ubiquitous Hawaiian Airlines is here, you are not likely to talk with someone who has been here very long who doesn’t know some of their employees or their families.
Ingram said that Hawaiian is working with the state to assure a safe reopening of travel. He cautioned that any further delay in the previously announced pre-travel testing could result in even more planned furloughs ahead. However, we continue to hear very little from Hawaiian about the state’s inability to implement or elucidate its previously announced pre-travel testing program. While we don’t know what Hawaiian may be thinking or saying behind the scenes, the state’s failure has resulted in their business collapse.
We are left asking ourselves, and you, what can Hawaiian Airlines do to help move the state of Hawaii forward?
Your comments speak to the situation at hand.
Jonathan said, “I’m surprised that the tourism industry is not camped outside Ige’s door screaming for blood. I would think that the first in line would be the CEO of Hawaiian Airlines. It’s strange to me that we’ve not heard more about why influential travel companies like Hawaiian are just rolling over and letting this happen?!?”
Jeanie added, “If Hawaiian Air would establish ‘rapid test’ procedures at every gate, and only passengers with a negative test would be allowed to board, thousands of tourists would return to Hawaii. No quarantine!! No increased danger to the islands. If a passenger has a positive test, they could be guaranteed ticket refunds for their party.”
Lisa said, “Some of the Federal-Aid Hawaii has received could have been used ingeniously to form a partnership between a qualified lab, Hawaiian airlines and the state of Hawaii. The state could have been on its way toward economic recovery and freedom. Having a local airline with this sort of partnership could have ensured responsible testing of visitors before they ever set foot in the islands.”
And James noted, “Why not form a partnership with Hawaiian airline carriers to temporarily eliminate Oahu from their schedules in favor of direct flights from the mainland and safer countries such as Japan and NZ? The “safest place in the U.S.” still works as a branding slogan. The airlines would include expedited CV19 testing. Their fare basis would include and factor in that partnership with labs that can offer 72 hour turnaround.”
Beat of Hawaii: All of your comments are appreciated. The reality is that Hawaiian Airlines cannot make testing mandatory. So even if they did offer it at the gate, people could opt-out. The entire testing debacle we were told would happen, was always shrouded in secrecy. There was supposed to be a contract with CVS to offer testing 72 hours prior to departure. That never happened and there are no obvious plans in place or on the drawing board.
* Hawaiian Airlines is the largest private employer in Hawaii other than health care providers.
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Vic S. says
As much as your suggestions to solve the problems of Hawaiian make good sense, there are underlying complications that can make a simple solution very unlikely. The airline business is extremely complicated, even during good times, so much that none us will ever know what goes on behind closed doors that we view as an obvious answer. Federal, state, and local politics, regulations, and ordinances all make for an uphill battle that can get in the way of what we think is an easy solution. We all hope they can get past this tough period as they have done in the past.
dan j says
It is baffling to say the least. 2,000 good paying jobs, down the toilet! The ignorance and lack of common sense is baffling! 50 million dollars a day generated by tourist. 94 percent of the positive covid test are residents. Now here are some facts. Tourism comprises 23% of the economy and 216,000 jobs! So the state is excluding the people who comprise 23% of the economy (tourism) to POTENTIALLY exclude 6% of the covid cases! Now throw in the fact that 100% of those 6% potential covid carriers can be required to come into the islands COVID FREE (i.e. PCR negative test within 48 hours). I am no doctor, but i am thinking that those that provide 23% of the states economy could easily and safely be imported with a miniscule chance (less than .5% of cases) of bringing covid with them! Throw in the fact that only 6% of the deaths, which i think is our major concern, come from those with Covid only, and you really have absolutely no logical reason to keep from opening up to tourist! This could happen next week! require an upload on the new app of a negative pcr test on the new app, within 48 hours, and there you go! if those kind of odds of tourist infecting the island, require another negative test with after 3 days of arrival. This is NOT rocket science, just takes a leader, and governor Ige should be impeached or recalled if he doesnt get off his butt and save some jobs!
Dan W says
At boarding gate tests would help. However, COVID in the human body is not detectable by tests until the 3rd to 5th day of its presence. So, boarding gate testing would not eliminate COVID from being brought to Hawaii by some passengers.
Paula G says
Just one question, with all the crazy things going on in Hawaii can someone tell me what Senator Mazie Hirono has done for our state? We’re sinking here and as far as I can see looking this up she seems to have gone silent. I could be wrong (please forgive me if I am) but I don’t see her doing anything for her state except to attack the President.
Thank you so much BOH for keeping us updated.
Beat of Hawaii says
Hi Paula.
We have not heard much from her it seems, compared with Ed Case, Brian Schatz, and others. Not sure why.
Aloha.
Scott says
I just got to the BI from San Diego….what a Cluster-F getting through the gauntlet of tracking and tracing forms. 50 people on the plane…10 min minimum each to complete entry process. First in HNL…then again in KOA. Application is not intuitive….does not retain information from one entry to the next…I see NO WAY to process the volume of tourists needed to stabilize the State economy and rebuild finances.
James R. says
Hawaiian Airlines can’t openly criticize or disagree with any of policies or quarantines because the local and state government will retaliate. Any critical comment will come back to haunt Hawaiian for years. Retaliation is very much a normal governmental practice in Hawaii.
Ken D says
The politicians need to get their act together. Over the past do yrs, some business partners, and I visited the Big Island to purchase some vacant land to build vacation units. The red tape – coupled with the blatant hostility toward vacation rental owners, we decided to go to a more business-friendly island. We settled for St. Croix.
Now, with this pandemic that seems to have staying power, the Hawaiian economy is going to be decimated. Tourism is going to be at an all-time low, and that’s the island’s lifeline.
Colleen says
We visited St.Croix 20 years ago and loved it. Beautiful island. Great Rum! Would love to return. The way things look – we will probably not be visiting Hawaii again any time soon. It will be a disaster by the time this has all played out that will require years and years to recover from. We haven’t seen the worst of this yet. It is still coming. ALL the airlines are planning huge lay offs soon. It just gets worse and worse. Vacationing will probably be the least of our worries very soon.
Travis says
There is no more money. Open up and move on like Mexico has done. Eventually that is what is going to happen. The vaccine won’t change anything. If the flu shot really worked there would be no flu. The covid vaccine won’t stop the spread. Time to wake up and get back to normal. Tourism is dying all over the world. Hawaii, the Caribbean, Las Vegas, cruiselines and ports they stop in like Alaska, theme parks, airlines and most hotels. People are not staying home, they are driving around their countries living off unemployment because the essential workers are still working and have been the whole time. But the economy is hurting and people are losing their jobs permanently because this can’t go on.
MelB says
Interesting comments. Going into a new market is never profitable for at least a year typically longer, thus increasing cash burn rate.
Tricia K says
Hi I’m not sure what the answer is for Hawaiian Air and the State of Hawaii. I do know that someone needs to step forward and make a decision before anymore of the island people loose their jobs, homes and more importantly their ability to care for their families. Please someone in a responsibly caring position step forward and save our communities. Mahalo
Beat of Hawaii says
Hi Tricia.
Thanks.
Aloha.
Patrick G. says
Hello, I have a lot of family in Hawaii which are mostly on Maui. Hard to believe that the state has basically been shut down for six months straight. With tourism being a very large part of the economy, it is unfathomable to me to think the Governor and Mayors would place it’s local residents in this type of lifestyle. Worrying about bringing in money for their families. There has been very little transparency from the local government. At least state a plan of action and then alter it if things need to be changed so mainlanders and locals can prepare for the return of tourists and visitors. I check quite frequently on the status and is very difficult to find any information let alone updated information. I am calling on the governor of Hawaii to make a plan for the residents as well as tourists and visitors so everyone can at least make future plans. We also have a rental on Maui, which we stay at quite often and rent out half the time. No income from that and we are paying our mortgage as well as all the high HOA fees……I feel for the people of Hawaii as they are being kept from making a living for their families.
Bob G says
Now you’ve got me worried, canceled reservations for October, rescheduled for February, Hope they get their act together
Don K says
Ige, like most guv’nurs found it relatively easy to shut everything down but aled to immediately start planning on how to reopen their respective states. The sad part is how completely the country was played as to the veracity of the numbers being pushed out from the CDC as to what tests were being done and grouping them accordingly such that there was one giant file of mixed mode testing as to who was an active case and who may have had it at some indeterminate time in the past but was no longer a spreader. You can’t fault them for getting bad data but Every state had someone interfacing with the CDC and those people did NOT ask the right questions relative to the data. And not taking into account how the virus has already been shown to have mutated as far back as June to a more virulent form but with less health effects and that is still in play everywhere. Truly a sad situation to have a tourism driven economy go down the tubes with almost unbelievable decisions being made on a daily or weekly basis by supposed leaders who are not suffering economically but can indeed make the citizenry suffer greatly. But you voted for it and this is what you get.
ron m. says
Hawaiian Airlines should team up with Abbot Labs who have come up with a 5 min. Covid-19 test. This $5 rapid test can be administered at the airport and can be included in the price of the ticket. The administration has to work with Hawaiian Airlines to make this happen and get the much needed economy going.
Robert T. says
CEO Ingram says ” We would welcome a six months extension of the Cares Act” Do you realize Hawaiian Airlines received 654 million dollars already? You ask why is Hawaiian Air not pushing to reopen Hawaii, why are they laying off thousands of employees? Why are non-essential Hawaiian forced to live in poverty while fat-cat corporations wallow in government bailouts? Why should Hawaiians pay for these bailouts? The economy is going to be destroyed, and the rich get richer.
What happened to “We are all in this together?” Please consider 1.4 million live in Hawaii and only 81 have died.
Patrick G. says
very well said
JimB says
Jeanie has the right idea, but Beat says the airlines can’t make testing mandatory. Why not? it’s a health crisis!
And that there is a mask of secrecy around the testing issue. Why is that? An investigative reporter out to develop that story.
Jonathan’s is right on point too as the Governors door is where I’d be if I were CEO of airline.
Even more proactive would be to create a consortium of the various hotels and airlines and other stake holders in Hawaii tourism to provide funds to buy tests and provide them free to tourists and inter-island travelers. Why not?
Nita C says
Time for Hawaiian Airlines to publicly share what is happening or not happening “behind the scenes” ! Time for them to publicly expose the incompetence of Ige et al. ! Time for them to publicly demand solutions not endless “talk” ! Unless you get the Hawaiian citizens to rattle the cages of the government, nothing will change. To wait for a Washington bail-out is what I think most Blue States are banking on, as they allow their economies to turn to dust- good luck with that, as functioning Red state citizens are not going go along with increasing their taxes to bailout fools. I speak as a citizen of the once great State of California, now turning into a 3rd world nation right before my 4th generation Californian eyes. Unbelievable! Yet, believable when you realize that Democrats think they can tax their way out of any mess they have willfully created…” …you eventually run out of other people’s $$$- Margaret Thatcher”, as thousands are fleeing California in mass- just lost 3 neighbors to other states this month alone.
Patrick G. says
Nita, you are completely correct and well said. I also live in CA and this state is getting real bad with Gavin Newsom running the show. Closing things up everywhere and is exerting his power hungry motions. The people of Hawaii need to rise up and come together and place pressure on Governor Ige. I have family over in Hawaii and everyone is struggling without the tourism happening. The state needs to at least come up with a plan and a timeline not only for residents but also for the locals………
Ken D says
Democrats??!
We wouldn’t be in this mess if we had a competent government; instead, we have a bunch of incompetent sycophants, who’s not looking to inform the public but to cover up the republican occupiers’ complete debacle.
Alfred H says
The cares act is a double edged sword. I’m all for helping Hawaiian Airlines but not at the expense of local small businesses. What I’m afraid of is that the cares act would take the pressure off of State Government by helping the large employers, which would leave the small shops and restaurants having to fend for themselves longer. The situation needs to get worse enough that the State either takes action to fix things or the decision makers get replaced.
Tim Z says
Wake up Hawaiian Airlines , go to Abbott Laboratory and make a deal at $5.00 per test and let’s open up next week and who cares what your Governor says , he’s not paying the bills and Obviously He doesn’t care….
JWI says
@TimZ. But, the Governor (and the other state legislatures) helps set travel rules ???
Danny L. says
Is anyone still allowed to travel to Hawaii during Covid? I normally go to Hawaii every year solo for a week but this might be the first year where I can’t go.
Any thoughts or advice from anyone who has traveled to Hawaii during covid? I am from California.
Alfred H says
You would need to come for at least 3 weeks. The first two weeks would be in quarantine, and then any time after that would be where you could be out and about. There are lots of deals so you could come for a month, with the quarantine weeks pretty much free. So the question would be if you could take off a month.
Patty T. says
So true, Alfred. I live in Arizona and visited my relatives on Oahu. Could not go anywhere for 2 weeks, then we could drive around but nothing to do or see because all is closed. Even the beaches. Pretty sad. The numbers were rising as we left.
JWI says
I can ! Benefits of semi retirement haha. But I did not want to be part of the problem right now + I do not want to jeopardize my health with rapid testing non-existent. I definitely do not want to sit to people in the plane not knowing whether or not they’re safe
Patrick G. says
Nita, you are completely correct and well said. I also live in CA and this state is getting real bad with Gavin Newsom running the show. Closing things up everywhere and is exerting his power hungry motions. The people of Hawaii need to rise up and come together and place pressure on Governor Ige. I have family over in Hawaii and everyone is struggling without the tourism happening. The state needs to at least come up with a plan and a timeline not only for residents but also for the locals………
JohnW says
I thinks it’s safe to say Hawaiian wants to open as quickly as possible, my guess is they are doing all they can to help but wisely are
not making a public scene by pointing fingers and making accusations. They have to work with the state no matter what cards
they are dealt.
It seems to me the state should be doing all they can to support Hawaiian. It’s in Hawaii’s best interest as the less
Hawaiian shrinks the less the state of Hawaii will lose paying unemployment benefits. In addition it’s always been Hawaiian that supported the state when there’s a downturn. Mainland airlines come and go, for instance after Iniki it was Hawaiian that carried the state while others scaled back.
Same is true now, mainland airlines are adjusting their flights to whatever benefits them, not Hawaii. Hawaiian needs to be able to
rapidly build up when tourism returns for the states benefit .
The state should be promoting “fly local” along with “buy local”. Hawaiian is an important resource that I’m guessing the politicians don’t fully comprehend.
Aloha to all, we’ll get through this. Hawaii always has and always will be a very special place.
Beat of Hawaii says
Hi John.
Thanks.
Aloha.
Nick D says
Alfred, I’m interested, and CAN make a “month” available, and help support the travel economy. Where are the offers such as this listed? I’d send you my email address, but this site will not publish it.
And I don’t care much for the tenor of the political anger brewing in responses to this posting– Is anybody other than me tired of the blame game? I’ve always visited HI to take a break from grievance politics, even though I have my own opinions.. . Thanks, Beat–
Beat of Hawaii says
Hi Nick.
Thanks. If Alfred lets us know, we’ll be happy to get him your email address.
Aloha.
Reiko says
You could come for a longer time period, but it may not be the best time to visit. Beaches, most restaurants, trails, hotels, most of everything is closed as we are still seeing triple digit cases and now increasing number of hospitalizations and deaths. Our people are on edge. Nurses are worried — our ICUs have only a handful of beds, Here on Hawai’i Island. Next year might be a better time.