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The Honolulu Advertiser

Posted at 11:59 a.m., Friday, August 23, 2002

Hawaiian to cut some Mainland flights

By Kelly Yamanouchi
Advertiser Staff Writer

Hawaiian Airlines said today it will cut some of its flights to the Mainland beginning next month, and adjust aircraft on some routes, in an effort to cut costs and cope with sluggish demand in the off-peak travel season.

The adjustments, effective Sept. 3 through Dec. 12, will eliminate 12 weekly flights and cut about 4 percent of the carrier's total scheduled seat capacity.

"We are looking top to bottom on saving costs," John Adams, the airline's chairman, president and chief executive said at the airline's annual shareholders meeting. "We need to, and have been, pursuing fundamental changes in the way we look at some parts of our business."

Adams did not say specifically what affect the seasonal reductions might have on the airline's employees, but said "there may be some adjustments to our labor force."

Under the seasonal adjustments, the carrier said it will reduce its daily San Francisco-Kahului, Maui, to just three days a week ­ Fridays, Saturdays and Sundays; and its daily Los Angeles-Kahului, Maui, flight to just three days a week ­ Saturdays, Sundays and Mondays.

The airline said it will reduce its daily Ontario, Calif.-Honolulu flight to five days a week ­ eliminating Tuesdays and Wednesdays; and its daily Los Angeles-Honolulu flight to five days a week ­ also eliminating Tuesdays and Wednesdays.

On two other daily Mainland routes, Hawaiian said it will use different aircraft three days a week to meet variable demand. The flights affected by those adjustments will be a Los Angeles-Honolulu and a San Francisco-Honolulu route.

"This is different than it has been in previous years," said Hawaiian spokesman Keoni Wagner. "Hawaiian typically had not made many specific changes to flight frequency or the flight schedule in general. But this year the approach is a little bit different ... to really better balance the supply and demand."

Adams said that "Over the holidays and the springtime, I expect that we'll go back to more frequent service."

The moves come as both of Hawai'i's interisland carriers seek to adapt to a changed travel environment.

Aloha Airlines is waiting for a decision from the federal Transportation Safety Board on its application for a five-year, $45 million loan. Earlier this month, Hawaiian Airlines' parent company reported a loss of $31.1 million for the second quarter, attributing some of it to the lingering effects on travel of the Sept. 11 terrorist attacks.

Meanwhile, Hawaiian and Aloha airlines continue to move forward with efforts under the federal Department of Transportation for an antitrust exemption that would allow them, for a limited time, to look at how full each other's planes are on interisland routes and determine how many flights can be cut.

The airlines plan to evenly split the remaining seats and monitor sales to make sure one airline does not end up with more profits than the other. The airlines say such cooperation is necessary to ensure that both survive in the interisland market.

Hawaiian and Aloha worked intensely from December to mid-March on a planned merger that eventually fell apart. When the deal was announced, the two sides said they needed to merge to survive, in part because of the drastic drop in business they suffered after the September attacks.