Hawaiian, Aloha increase prices

By Kelly Yamanouchi
Advertiser Staff Writer

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Hawaiian, Aloha fare change highlights Interisland fares will be based on seats available on a flight. Ticket prices are $67, $75 or $85. The more seats available, the more likely the lowest fare will be offered. Booking in advance may get you a seat on the flight you want, but will not guarantee a cheaper price. Hawaiian's fares for Lana'i and Moloka'i travel and two-segment connecting flights are higher. Aloha's sister company, Island Air, will maintain its current pricing based on advance purchase requirements.

Hawaiian Airlines changed its interisland fare structure yesterday and was quickly matched by Aloha Airlines. The new fare system bases prices on the number of seats available rather than how early a flight is booked.

The move by Hawaiian and Aloha is part of the carriers' ongoing efforts to make a profit in the interisland flight market and return to more solid financial footing. By changing their fare structures and discouraging spur-of-the-moment travel, the airlines hope to spread passengers more evenly between interisland flights and make more efficient use of their aircraft.

The strategy follows the practices of most Mainland airlines, which have already done away with discounted tickets based on advance reservations and which will change prices at any time based on the number of seats they have sold.

The shift by Hawaiian and Aloha to demand-based interisland fares without advance purchase requirements could mean lower prices for people who are flexible because the lowest price on a flight may be available on the day of departure.

But it also means that busy travelers who are not flexible may not get the cheapest fare even if they book more than a week ahead of time. Instead, their price will depend on how many seats are still available on a flight.

The changes announced by Hawaiian and Aloha come as business travelers, residents, tour operators and government officials are complaining that interisland airline seats are far too scarce.

Both carriers cut the number of interisland flights after being granted a federal antitrust exemption late last year, meaning they can work together on setting schedules to ensure neither carrier is flying planes that are half empty.

"We think that the new system will help us in our effort to achieve financial viability across the entire interisland operation, and the sooner we can achieve that the sooner we can consider changes in seat capacity," Hawaiian spokesman Keoni Wagner said.

In January, Hawaiian and Aloha also stopped issuing interisland flight coupons and instead sold interisland flights with only three choices: the cheapest price for a seven-day advance purchase, a higher price for a three-day advance purchase and the highest price for unrestricted anytime fares. But the new system gives no clear price advantage to travelers for advance purchases.

Effective yesterday, there are three ticket prices, depending on how many seats on a particular flight are available: $67, $75 or $85. Previous prices were about $69, $73 and $78.

Seats on popular early morning flights that fill up quickly, for example, can be expected to cost more.

The new fares also mean some roundtrips to smaller airports will hit $200. Hawaiian's fares for Lana'i and Moloka'i flights carry a $15 add-on fee, bringing a roundtrip ticket to $200 on the most popular flights.

Airline executives hope the new fares will result in a better balance between supply and demand.

"This is critically important to solving the serious financial sustainability problems that affect interisland operations," said John Adams, Hawaiian's chairman and chief executive.

Aloha spokesman Stu Glauberman said the carrier made the change to match Hawaiian's fares.

"The good news is that if a plane is really empty then consumers would have the chance to get the lowest fares. They wouldn't have to book well in advance," said Danny Casey, president of the Hawai'i chapter of the American Society of Travel Agents. "If they're not flexible, obviously it looks like they're going to be paying a little bit more money."

Casey added that it will still be a good idea to make reservations as early as possible to improve the chances at getting a low price. The difference now is the cost will not be very predictable, he said.

"It's another step in the continuing evolution of travel which has both benefits for consumers as well as potential pitfalls," Casey said.

Hawaiian also raised the prices for commuter passes as of March 1 and was matched by Aloha. The price for a monthly commuter pass including frequent flyer miles, for example, increased from $1,469 to $1,999. The cost of a weekly commuter pass increased from $360 to $599.

The increase came as a surprise to some who work on one island and live on another.

"Everyone is in shock," said Kris Taylor, who commutes from Kona to Honolulu daily for her job as vice president of sales and marketing for Maui Divers Jewelry. "Some people have chosen to rent apartments over here now."

As of April 1, Hawaiian is also eliminating discounts on interisland and trans-Pacific flights for wholesalers such as tour operators, Wagner said.

Aloha did not have information yesterday on whether it also will end wholesaler discounts.

"It merely means that it will be much more expensive to go visit the Neighbor Islands," said Michael Carr, president of Polynesian Adventure Tours. "I think the people that are going to suffer economically are merchants on the Neighbor Islands and places like orchid farms, coffee mills and small little stores that are used to having buses stop there."

But given the turmoil in the airline industry, "I don't fault them one bit," Carr said. "Were I in the shoes of their management decision makers I might be making the same decisions that they're making."

Reach Kelly Yamanouchi at kyamanouchi@honoluluadvertiser.com or 535-2470.