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The Honolulu Advertiser
Posted on: Tuesday, January 27, 2004

Aloha, competitors bicker over slots at D.C. airport

By Debbie Sokei
Advertiser Staff Writer

Several carriers are trying to block Aloha Airlines' efforts to get slots at Ronald Reagan Washington National Airport in Washington, D.C., to launch its first East Coast service to Hawai'i.

Aloha said in a recent filing with the U.S. Department of Transportation that it would offer lower fares and is the only airline that would provide nonstop service from airports in the D.C. area to Orange County, Calif. Passengers could then connect in California to Hawai'i flights.

Aloha is petitioning for four of the 12 available slots at Reagan airport, but it faces stiff competition from eight other airlines: United, Delta, American, Alaska Airlines, America West, Frontier, US Airways and Primaris Airlines.

The Washington/Baltimore market provides 90,000 visitors a year to Hawai'i. The DOT will make its decision in March.

Because some of the major carriers have slots at Reagan airport, Aloha said the DOT should "give lower priority to awarding slot exemptions to these carriers."

American, which applied for two slots to operate daily nonstop service to Los Angeles, said that Aloha should be given a "low priority."

In its DOT filing, American said that Aloha is not financially strong enough to implement a new service, citing Aloha's receipt of a $40.3 million loan guarantee from the Air Transportation Stabilization Board in 2001.

American also said that Orange County has the smallest amount of Washington traffic of any "beyond-perimeter" point proposed.

Aloha disputed American's claims.

"Aloha's numbers for 2003, at the bottom line, were $1 billion better than American. We reported a modest profit, and they reported a loss in excess of $1 billion dollars," said Glenn Zander, Aloha Airlines chief executive.

United, which applied for three nonstop flights a day from Reagan airport to the West Coast, said Aloha can't offer travelers the choice of destinations required by the Transportation Department in awarding the slots.

But among the rivals, Aloha claims to be the only "true new entrant" in the market, one of the criteria outlined by federal officials.

Aloha's 14-day advance purchase ticket from Reagan airport to Honolulu will be $100 less than fares offered by Continental, United and Delta, the airline said. And its lowest seven-day advance purchase ticket from Reagan airport to John Wayne Airport in Orange County will be $159.

United offers a nonstop fare of $554.

Gov. Linda Lingle supported Aloha's petition in a letter to Transportation Secretary Norman Mineta.

Lingle said the Aloha route would provide an "important service link for the significant volume of military and government traffic between Washington, D.C., and the East Coast, on the one hand, and Hawai'i and the Pacific region on the other."

Rex Johnson, executive director of the Hawai'i Tourism Authority, and John Monahan, president and chief executive of the Hawai'i Visitors & Convention Bureau, also wrote letters supporting Aloha.

If Aloha's petition is approved, the airline will begin service July 1.

The first flight of the day would leave Reagan airport at 8 a.m. and arrive at John Wayne airport at 10:45 a.m. The flight to Honolulu would leave Orange County at 11:50 a.m.

The evening flight would leave Reagan at 5:05 p.m. and arrive in Orange County at 7:50 p.m. The flight would continue to Honolulu at 8:55 p.m.

Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.