An example of just how competitive all flights to Hawaii are just surfaced. And, while there remains no clear indication of what will happen for the Hawaii bellwether in the next year, it is virtually, without doubt, going to be something big, either one way or the other.
Hawaiian is intent on being acquired by Alaska Airlines, as was proposed in December. We will continue to learn more about that as it gets closer. As we mentioned, next up is shareholder approval from Hawaiian for the deal, among other things. That follows the recent shareholder lawsuit brought on to stop the planned deal. The big unknown is whether the “airline merger-adverse” US Justice Department will or won’t approve the deal. If that doesn’t happen, all bets are off, and there is more and more discussion about the real possibility of a third Hawaiian Airlines bankruptcy.
What is happening here with Hawaiian and United, is that Hawaiian’s international business isn’t returning to the degree it had hoped and needed. As a result, Hawaiian Airlines announced last week that it would surrender its nighttime authority to operate flights between Tokyo (Haneda) and Honolulu (four times weekly) and Kona (three times weekly) starting April 2. That gave United a place to move forward.
It was just a few months ago that Hawaiian announced it was restarting service between Tokyo Haneda Airport (HND) and Ellison Onizuka Kona International Airport (KOA). The airline had planned to return to its prior schedule gradually; however, that did not work out exactly as they had planned. Hawaiian hoped to restore its “Japan network to meet increasing demand.” Hawaii vacations, however, are not returning for Japanese visitors, as Hawaii Governor Green was advised on his recent marketing visit to Tokyo.
Hawaiian notified the DOT last week, stating the relinquishment of slots was something they undertook following careful consideration as the result of adverse market conditions. It said that it was not financially viable to continue these flights.
Hawaiian Airlines’ Japan-Hawaii market faces multiple challenges, including 1) the weakness of the Japanese yen in relation to the U.S. dollar, 2) the very high costs of Hawaii accommodations, and 3) the encouragement of their in-country vs. international travel. It is expected to take years before Japan/Hawaii travel resumes fully.
Hawaiian Airlines reported that these factors make trips to Hawaii unaffordable for Japanese visitors and doesn’t see any real possibility of a turnaround for its nighttime Japan flights in the foreseeable future.
Given the lack of ability for Hawaiian to use these slots, United Airlines is seeking approval for them to operate a new 7-days per week Tokyo to Guam service instead. US DOT is considering United’s request following Hawaiian Airlines’ decision. Previously, the DOT has ruled in favor of Hawaiian keeping its slots, although United disagreed, saying that they weren’t being properly used.
Please share your thoughts on the competitive scenario unfolding in Hawaii’s skies.
I recently flew business class on both JAL & Hawaiian from Hawaii HNL & KOA to/from Tokyo, on two separate trips. JAL was hands down the better product. Better seats, layout, service, food, condition …..everything…..the overall quality was incredible on JAL.
I flew HND-HNL-HND at Christmas outbound JAL return Hawaiian as JAL flight was sold out in Business. Totally agree with you. Hawaiian Flight attendants were friendly and that is about it.
Yes. Hard to compare HA with JAL/ANA in C class. The business product of Japanese carriers are in a class of their own.
On the other hand, JAL economy to KOA is really poor. Mostly due to 767 aircraft, but not only.