Hawai'i a bright spot for United

By John Duchemin
Advertiser Staff Writer

Hawai'i has become one of United Airlines Corp.'s best-performing regions as the airline recovers from the devastating effects of Sept. 11, the top local United official said Friday.

While still losing money, Hawai'i routes are losing less than flights to any other destination, said Tom Renville, managing director for United's Hawai'i operations.

"The signs are encouraging that we're coming close to being profitable in Hawai'i," Renville said.

While United eliminated about 20 percent of its flights after Sept. 11, it only cut 14 of its 147 weekly Hawai'i flights — all of which returned in February.

The airline, which has 30 percent of the U.S. Mainland-to-Hawai'i market, has since added nine flights and now has more capacity to Hawai'i than it had at this time last year, Renville said.

United has recalled about 100 of the 200 Hawai'i employees who were laid off after Sept. 11, Renville said.

United for years considered Hawai'i an unprofitable but necessary destination. Customers would use frequent-flier miles for discount trips, filling space on flights for which rates were already low due to stiff competition.

But Renville said United's newer planes are more efficient, meaning Hawai'i is slowly becoming profitable.

Also helping profits is the increase in direct flights to the Neighbor Islands, Renville said. Flights to Kailua, Kona, have proven particularly lucrative, while O'ahu is still the least profitable, he said.