Posted on: Wednesday, February 9, 2005

Hawaiian reduces airfares by 22 percent

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines yesterday announced lower fares that go into effect today, making it possible for passengers to buy one-way, interisland tickets for as low as $69 on either Hawaiian or Aloha Airlines.

Hawaiian's new rate structure of $69, $89 and $109 — for passengers who book online — drops its ticket prices by more than 22 percent.

The $69 fare matches Aloha's lowest price for members of AlohaPass, which requires only a mailing address, e-mail address and phone number to join.

Aloha offers four one-way fares for AlohaPass members flying interisland — $69, $79, $89 and $99.

Neither airline reveals how many seats are available at the lowest rates on any flight.

"We cut our interisland fares to make it easier for kama'aina to fly on the nation's best airline," said Josh Gotbaum, Hawaiian's bankruptcy trustee, in a statement.

Thom Nulty, Aloha Airlines' senior vice president of marketing and sales, responded to Hawaiian's announcement by saying "Aloha Airlines will not be undersold. My initial reaction is that I applaud their creativity, and you can count on us to be competitive. ... Any airline has to do what they can do to be competitive. You can't allow a competitor to have anything that is better than what you offer."

Hawaiian's new fares would apply to any customers, as long as they book online at HawaiianAirlines.com. There are no restrictions on when customers can fly or on the number of tickets they can buy.

The new fares include surcharges, taxes and all other costs.

Although Hawaiian has not placed a time limit on the new fares, officials said they can be changed at any time.

Aloha's Nulty said Hawaiian's fare change simplifies ticket sales and reduces costs.

"It could be a very good move for the industry," Nulty said. "It can actually lead to some efficiencies in driving more travelers to the Web, which is clearly the least expensive way to operate. If this fare action drives more customers to the Web, then your overall operating costs to sell a ticket really goes down. Simplification could be a good thing."

In January, the U.S. airline industry's No. 3 carrier — Delta Air Lines — slashed its ticket prices for business travelers and was matched almost immediately by competitors that fly the same routes.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.