New Island Air could be boost for interisland travel
By Debbie Sokei
Advertiser Staff Writer
Aloha Airlines subsidiary Island Air is now flying solo, and the move couldn't have come sooner for Neighbor Island travelers.
Yesterday, San Francisco-based Gavarnie Holdings LLC completed the purchase of Island Air from Aloha Airgroup Inc., the parent company of Aloha Airlines.
The purchase price was not disclosed.
Island Air enters the market as the state's third largest airline and will concentrate on adding more nonstop flights between the Neighbor Islands at lower prices, said Neil Takekawa, the company's CEO.
"Island Air will be able to grow and expand to meet the needs of the community, particularly for the Hawai'i traveler," Takekawa said.
Island Air launches nonstop service between Kahului and Kona starting tomorrow. During the next six months, the airline will add four new routes between Hilo and Kahului, Hilo and Honolulu, Lihu'e and Kahului, and Lihu'e and Honolulu.
That's good news for business travelers like Avery Chumbley, executive vice president of C. Brewer & Co. Ltd., who commutes between the islands. Chumbley flies three times a week from his home on Maui to his office on the Big Island, via Honolulu.
"It will have a significant impact on me," Chumbley said. "I now leave my house at 7:15 a.m. and I don't get to the Hilo office until 10:30 a.m. That's more than three hours commuting time, which should be a 25-minute flight."
Island Air tickets are generally cheaper than Aloha and Hawaiian Airlines. A one-way ticket to any Island Air destination costs $102.60, Takekawa said.
By comparison, Aloha charges $115.60 one-way from Lihu'e to Honolulu and Hilo to Honolulu. Aloha also charges $121.20 one-way from Hilo to Kahului and Lihu'e to Kahului.
Hawaiian's flights cost $146.61 one-way from Lihu'e to Kahului or Hilo to Kahului. Tickets cost $136 from Hilo to Honolulu and $131 from Lihu'e to Honolulu.
Island Air also plans to hire 100 more employees and add five new 37-seat De Havilland DASH-8 turboprop aircraft to its fleet of four. The estimated cost of the new fleet ranges between $20 million and $25 million.
Takekawa said the airline expects to operate 100 flights a day, double the number it currently flies. Island Air now files between Honolulu and Kahului, Kapalua, Moloka'i and Lana'i.
Gavarnie Holding's principals are investor Charles Willis of San Francisco and his son, Austin Willis. Charles Willis will serve as chairman and his son will have the title of director and be involved in strategic development.
Aloha Airlines continues its marketing agreement with Island Air, which will honor mileage credits in the AlohaPass program.
"This transaction enables Aloha to continue to focus on its primary routes, which include Hawai'i's five major airports, and link them to North America and the Pacific," said Glenn Zander, Aloha Airlines president and CEO.
Duke Ah Moo, Pleasant Island Holidays vice president, celebrated news of Island Air's expansion. He said he has been losing business for lack of nonstop service between Maui and the Big Island.
Many tourists want to visit the Big Island to see the Kilauea volcano eruption, but they don't want to spend a lot of time in the air, he said.
"Their time in Hawai'i is so limited," Ah Moo said. "It's a convenience issue."
Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.
