Hawaiian sticks to higher fares
By Dan Nakaso
Advertiser Staff Writer
Hawaiian Airlines' fares remain higher than the competition and summer bookings are off 10 percent, but the president of Hawai'i's largest airline testified yesterday that Hawaiian wants to lead the airline industry in nudging ticket prices back toward profitability.
Advertiser library photo • March 2005
"We're hoping our competitors match us," Mark Dunkerley testified yesterday in U.S. Bankruptcy Court.
Hawaiian Airlines is keeping its inter-island fares higher than competitors in an effort to nudge ticket prices back toward profitability.
Dunkerley appeared at what could be a three-day hearing to determine whether Hawaiian's pilots should be forced to accept new contract terms against their will. The hearing, which so far has focused on Hawaiian's economic place in the airline industry and its future profitability, was scheduled to continue this morning.
Dunkerley testified yesterday that Hawaiian raised its round-trip, trans-Pacific fares $40 about three weeks ago and was disappointed that no one matched the increase.
United temporarily increased its fares only $20 and Delta $10.
When competitors then dropped their prices and Hawaiian's bookings fell 14 percent to 15 percent, Dunkerley said, Hawaiian also lowered its prices.
But Hawaiian's trans-Pacific fares remain $5 more expensive per round trip than almost all of its competitors, Dunkerley said.
Then last week, Hawaiian increased its inter-island ticket prices $5 to $15, anticipating that its competitors would follow.
Instead Aloha Airlines, Hawaiian's main inter-island competitor, didn't budge on Neighbor Island prices, Dunkerley said.
And Hawaiian learned that Aloha salespeople were mentioning Hawaiian's higher fares to try and coax away Hawaiian's business, Dunkerley said.
With summer bookings down 10 percent compared to the same period last year, Dunkerley said Hawaiian hopes competitors increase prices.
During a court recess, Dunkerley said he did not know how long Hawaiian's fares will remain higher than its competitors.
"We review that day by day," he said.
Reach Dan Nakaso at 525-8085 or dnakaso@honoluluadvertiser.com.
