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The Honolulu Advertiser
Posted on: Friday, November 10, 2006

go! airline sets off $29 price war again

By Rick Daysog
Advertiser Staff Writer

Interisland airfares are dropping again. This time by $10.

go! airline said yesterday it was lowering its one-way fares to the Neighbor Islands to $29 from $39 for travel through the end of the year.

The new fares were immediately matched by Aloha Airlines and Hawaiian Airlines.

go!, a unit of Phoenix-based Mesa Air Group, said it was offering the new fares in honor of Veterans Day this weekend.

"We have always supported our veterans and the brave men and women who serve in our armed forces," said Jonathan Ornstein, Mesa's chief executive officer. "This sale is another way for us to commemorate and thank them for their dedication to our country and the freedoms we enjoy every day."

The new fare at all three airlines is good for travel through Dec. 31, except on Christmas, Thanksgiving and New Year's Eve. Tickets must be purchased by Nov. 19.

Certain restrictions apply to the $29 fares, and the three airlines would not say how many tickets they will sell at that price. However, in previous rounds of fare cuts, many consumers reported that the bargain tickets were readily available.

Foster Village resident Brenda Salgado said she's been able to save hundreds of dollars for her company and her family by booking flights on go!

One-way fares would have cost $50 or more a year ago, said Salgado, an assignment editor at television station KGMB.

"For a business like ours, the convenience and the price are major factors," she said.

go! touched off a price war when it opened for business in Hawai'i on June 9.

Since then, the lower interisland fares have boosted travel by local residents, many of whom had cut back on Neighbor Island trips when one-way prices jumped to $80 or more after Sept. 11.

go! first offered $29 fares for limited periods in July, August and September. Those fares also were matched by Aloha and Hawaiian.

go! also offered a limited number of tickets for $19 for a limited time in June and September. Hawaiian matched both specials while Aloha gave 1,000 free round-trip tickets to customers who lined up to get them in June and matched the $19 fare in September.

The $29 fares come as go! reported its slowest month since its June startup. The local carrier said its load factor for October was 62.9 percent, which was down from 66.1 percent in September, 64.5 percent in August and 73.9 percent in July. In addition, the 60,466 passengers flown by go! in October was the lowest monthly total since June.

go! noted that it suffered service interruptions last month after several airports were closed by power outages brought on by two Big Island earthquakes.

Hawaiian said it filled 86.5 percent of seats on its scheduled flights last month, down from a 90.6 percent average in October 2005. Passenger statistics for Aloha are not yet publicly available.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.